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Canadian Zinc Corporation has announced that at its upcoming annual general and special meeting to be held on June 27, 2018, shareholders will be asked to approve a statutory arrangement to reorganize the company into a separate publicly-listed holding corporation, to be named NorZinc Ltd., and a directly held, wholly-owned, operating subsidiary.
Canadian Zinc Corporation (TSX:CZN;OTCQB:CZICF) has announced that at its upcoming annual general and special meeting to be held on June 27, 2018, shareholders will be asked to approve a statutory arrangement to reorganize the company into a separate publicly-listed holding corporation, to be named NorZinc Ltd., and a directly held, wholly-owned, operating subsidiary.
As quoted in the press release:
Currently the company’s flagship asset, the Prairie Creek zinc-lead-silver project, is held directly by the public company Canadian Zinc Corporation. The objective of the arrangement is to structure the assets of the company to facilitate future project financing of the Prairie Creek project.
Discussions to date with financial institutions have confirmed that the opportunity of raising project debt financing to complete the development and construction of the Prairie Creek mine would require that the Prairie Creek project be held in a separate stand-alone entity, and that the public parent company be structured to act as project sponsor.
Management determined that the proposed arrangement, which will create a new holding company, to be named NorZinc Ltd., while leaving all the Prairie Creek property, assets, agreements and permits in place held in a wholly-owned subsidiary, is the most efficient way to accomplish this objective.
If the arrangement is approved and completed, all the shares of Canadian Zinc will be exchanged for shares of NorZinc, on a one-for-one basis, and there will be no impact on a shareholder’s ultimate economic interest.
Click here to view the full Canadian Zinc (TSX:CZN) press release.
