Tuesday, March 24, 2009

Canada Zinc Metals CZX.v: What Chinese know the others don't? CZX.v, LUN.to, HUD.to

Two things are pointing to their thinking:

There is some life outside the US Misery:
Tata Motors (TML) has announced the commercial launch of the Nano keenly awaited across India since it’s unveiling on 10 January 2008.

Surprise, surprise:
Inflation surprises and jumps to 3.2%
"UK inflation defied expectations to rise in February for the first time in five months, triggering another exchange of letters between Mervyn King, governor of the Bank of England, and Alistair Darling, chancellor.
Inflation as measured by the consumer price index rose to 3.2 per cent in the year to last month, up from 3 per cent in January, and still more than 1 percentage point above the Bank’s target rate"
Talking about Canada Zinc Metals CZX.v - Tongling has received Local government approval of investment into company. Things in Beijiging should be moving swiftly as from 1.05.2009 this kind of investments below 100 mil USD will be in a local government prerogative. Company still trades at level 0.2CAD and Chinese are buying 13% at 0.425CAD, Mr Market and they must be reading different newspapers.
Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement
23, 2009
Vancouver, British Columbia, Canada – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce that, further to its news release dated January 26, 2009, it has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. (“Tongling”) that the State-Owned Assets Supervision and Administration Commission of Anhui, China, has approved Tongling’s application to invest in Canada Zinc Metals. Tongling will now apply for final approval from the Development and Reform Commission.
Canada Zinc Metals has entered into a financing arrangement with Tongling pursuant to which Tongling will purchase units equal to a 13% equity position in Canada Zinc Metals. Tongling has subscribed, by way of a non-brokered private placement, for 11,500,000 units of Canada Zinc Metals at a price of $0.425 per unit for gross proceeds of $4,887,500. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant shall entitle the purchaser to purchase, at any time within 24 months from closing, one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year.
“We are pleased to be acquiring this initial stake in Canada Zinc Metals,” said Mr. Li Dongqing, Chief Engineering Officer of Tongling. “Along with the Akie property, the significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity. We look forward to continuing to build our relationship with the Company.”
Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling’s principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals.
The financing is subject to receiving the necessary approvals of the relevant Chinese regulatory departments and the TSX Venture Exchange.
About Canada Zinc Metals Corp.
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
About the Akie Property
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company has filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade). The complete NI 43-101 technical report, titled “Geology, Diamond Drilling and Preliminary Resource Estimation, Akie Zinc-Lead-Silver Property, Northeast British Columbia, Canada” and dated May 30, 2008, can be viewed on SEDAR.
Two similar deposits, Cirque and South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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