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Be the first with the news that moves the market- NorZinc Ltd (TSX:NZC) has outlined plans to increase production and mineral reserves at its Prairie Creek Mine, in the Northwest Territories
- Through a C$4.2 million bridge loan from the company’s largest shareholder RCF VI CAD LLC, NorZinc will finance the planning portion of its Prairie Creek development project
- Once approximately C$20 million in further financing is arranged, NorZinc will pay off the bridge loan and commence exploration and drilling activities at the site with the remaining proceeds
- Failing any unforeseen disruptions, NorZinc stated increased production and mineral reserves at Prairie Creek can be achieved within two years
- NorZinc Ltd (NZC) is up 9.1 per cent, with shares trading at $0.06 and a market cap of $23.4 million
NorZinc Ltd (TSX:NZC) has outlined its upcoming plans for the Prairie Creek Mine, in the Northwest Territories.
After an internal review into the mine’s direction, the company will now focus on increasing the site’s production and reserves.
The mine is currently estimated to have a mineral reserve of 8.1 million tonnes of zinc and lead at 8.6 and 8.1 per cent, respectively, as well as silver at 3.6 ounces per ton.
Starting this month, the company will begin planning the site’s development. Toward this end, the company has arranged a C$4.2 million bridge loan through its largest shareholder, RCF VI CAD LLC.
The loan has been borrowed at an 8 per cent per annum interest rate and is to be repaid within six months.
RCF already holds 40 per cent of the NorZinc’s shares and will purchase further shares, up to the value of the bridge loan.
NorZinc plans to utilise the cash to accelerate the planning phase, as well as offset any operational disruption caused by the COVID-19 pandemic in coming months.
Looking forward, NorZinc plans to raise further funds through approximately C$20 million in financing.
Once arranged, the company will be able to pay off the bridge loan. With the remaining cash, the company can fund the subsequent exploration and drilling activities required to increase the known mineral reserve at Prairie Creek.
The company stated that, failing any severe unforeseen disruptions, its new objectives at Prairie Creek can be achieved within two years.
NorZinc Ltd (NZC) is up 9.1 per cent, with shares trading for $0.06 at 11:48am EST.
