Canada Zinc Metals Corp. (TSXV:CZX) announced that it has entered an option agreement with Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) through which Teck will earn up to a 70-percent interest in Canada Zinc’s Pie, Cirque East and Yuen properties.
As quoted in the press release:
The deal includes a private placement by Teck for 1,250,000 units of Canada Zinc Metals at a price per unit of $0.40, resulting in a total subscription of $500,000. Each unit shall comprise one common share and one share purchase warrant that will entitle Teck to purchase one additional common share of Canada Zinc Metals within 24 months at a price of $0.40 per share.
The Agreement outlines two options (the “Options”) that are subject to certain expenditure requirements, as outlined below:
- Under the First Option, Teck can earn an undivided 51% interest in and to the Property by incurring a cumulative aggregate of $3,500,000 in exploration expenditures on the Property on or before September 30, 2017, with $500,000 in exploration expenditures to be completed on or before September 30, 2014.
- Under the Second Option, Teck may elect to acquire an additional 19% interest in the Property for a total of 70%, by incurring an additional $5,000,000 in exploration expenditures (for a total aggregate of $8,500,000 in exploration expenditures) on the Property on or before September 30, 2019.