Mr. Wayne Hubert reports
INZINC ANNOUNCES AN UP TO $200,000 UNIT FINANCING
Inzinc Mining Ltd. has arranged a proposed non-brokered private placement of up to 6,666,666 units for gross proceeds of up to $200,000 at three cents per unit. Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of six cents for 24 months following the closing of the offering.
The offering is expected to close on or about Feb. 18, 2021, and is subject to the receipt of regulatory approvals, including the approval of the TSX Venture Exchange. The net proceeds from the offering will be used for general working capital purposes.
Certain directors and officers of the company intend to subscribe for units under the offering. The participation of the directors and officers in the offering constitutes a related-party transaction for the purposes of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is exempt from the requirements to obtain a formal evaluation and minority shareholder approval in connection with the insider participation in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued will exceed 25 per cent of the company's market capitalization as calculated in accordance with MI 61-101.
Finders' fees may be payable under the offering in cash or through the issuance of securities of the company or a combination thereof to parties at arm's length to the company.
About Inzinc Mining Ltd.
Inzinc is focused on growth in zinc through exploration and expansion of the advanced-stage West Desert project (100 per cent) in Utah and exploration of the early-stage Indy project (100-per-cent option) in British Columbia. West Desert has a large underground resource open for expansion and has district-scale exploration potential. A West Desert preliminary economic assessment completed in 2014 forecasted 1.6 billion pounds of zinc production over 15 years. Byproducts would include copper, magnetite and indium, the latter being identified by the United States in 2017 as a critical mineral. West Desert is well located with easy access and existing infrastructure. The Indy Sedex project comprises near-surface discoveries, large untested exploration targets and regional discovery potential. Indy is readily accessible by road from Prince George, the major hub for transportation and heavy industry in central British Columbia, and is located 85 kilometres (km) south of the Canadian National Railway. On Dec. 22, 2020, InZinc announced that it had signed a non-binding letter of intent (LOI) with American West Metals Ltd. that contemplates the companies entering into an option agreement prior to March 31, 2021, under which American West can acquire 100 per cent of the West Desert project, providing American West makes all the payments contemplated by the LOI. There are no assurances that this transaction will complete as contemplated.
We seek Safe Harbor.
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