- Mineral exploration company, Fireweed Zinc (FWZ) has closed its private placement after raising approximately C$5.2 million in gross proceeds
- The company issued its units and flow-through common shares at three separate prices, producing an aggregate $5,239,351
- Fireweed insiders participated for a total 521,697 units and 76,961 flow-through shares during the non-brokered offering
- The placement proceeds will fund exploration and development of the company’s Macmillan Pass Project in Yukon
- Fireweed Zinc (FWZ) is up 3.33 per cent and is currently trading at 62 cents per share
Mineral exploration company, Fireweed Zinc (FWZ) has closed its private placement after raising approximately C$5.2 million in gross proceeds.
The offering consisted of three parts, in which company units and flow-through common shares were issued at different prices.
In the first round, 3,154,673 units of Fireweed were issued at $0.53 each. Each unit contained one non-flow-through common share and one half of a two-year warrant. Warrants from this round are exercisable at $0.80 per share.
In the second round, 3,582,423 flow-through common shares were issued at $0.65 each.
In the third round, 1.63 million flow-through common shares were issued at $0.76 each, through a donation arrangement. Each share was accompanied by one half of a two-year warrant, exercisable at $0.80 per share.
In all, the three parts of the non-brokered offering culminated in aggregate proceeds of $5,239,351.
During the private placement, company insiders participated for 521,697 units and 76,961 flow-through shares. These insiders mainly consisted of Directors, Management, and their proxies.
Proceeds from the placement will fund exploration and development of the company’s Macmillan Pass Project in Yukon, Canada. Some funds may also go towards general working capital purposes.
Fireweed’s CEO, Brandon Macdonald, commented on the strong response to the private placement, and the positive result.
“Thanks to impressive investor demand, we are able to close this financing on proceeds almost 50 per cent higher than what we opened on.
“Now, building on last year’s best holes ever at Boundary, including 100 metres of 7.94 per cent zinc from surface including 6.4 metres of 42.88 per cent zinc, we can drill to further test the high grade and extensions of the zone as we start to outline a potential open pit deposit at Boundary.
“We will also be exploring and drilling on some new targets, seeking new discoveries. Our crews are already in the field finalising drill sites, and we are looking forward to more great results this summer,” he said.
Fireweed Zinc (FWZ) is up 3.33 per cent and is trading at 62 cents per share at 12:10pm EDT.
