"This investment story is all about China and its growth.
Warren Buffet mentioned along the lines, that in order to be the great investment story the business behind it should be really boring. Canada Zinc Metals with its Zinc deposit in Canada will pass this test at the first glance. What can be duller than Zinc in times of Twitter, Tesla and iPads? In order to get our idea you need to have a look at three things here: chart above with exponential growth in Car sales in China, Chart below with Zinc priced for a Double Dip and CZX.v corporate structure. Chinese Tongling holds now close to 20% in the company. Latest placement was with another Chinese investor at 0.6CAD with premium to the market of more than 30% (CZX.v now is at 0.45CAD). This investor controls now more than 10% of Canada Zinc Metals according to filing. With good odds for deposit to be expanding and blue sky potential of the new discoveries we think that the company is very close to more aggressive move by Tongling in order to secure the potential of this region play in Canada. For us it will be very interesting to see the destiny of investment stake by CZX.v in TNR Gold in this case, when Togling will become a partner with strategic opportunities in Lithium and REE investment and can be potentially involved in huge Argentinian Copper play at Los Azules."
Chinese Tongling is taking another placement with Canada Zinc Metals above the market price. Now, it will be interesting to see whether Lukas Lundin will be back into this M&A story in Canada. This is because Lundin Mining still holds a significant stake in the company and the recent deal with Kinross Gold buying rest of the shares of RedBack Mining will bring sufficient liquidity to Lukas Lundin treasury, should he decide to rebuilt his Lundin Mining base metals powerhouse for this stage of coming reinflation commodity boom.
Canada Zinc Metals has announced a buy back now and we could not agree more that the company is still undervalued. Strategic investment in TNR Gold with its Lithium and REE projects, not to mention again a back door into the Los Azules Copper project in Argentina, remains a wild valuation card still to be played at this table. Lundin Mining or Giant Tongling could change valuation of this company literally overnight with its involvement.
"Canada Zinc Metals Corp. Announces Renewal of Normal Course Issuer Bid
August 4, 2010
Vancouver, British Columbia – Canada Zinc Metals Corp. – (TSX Venture – CZX) (“Canada Zinc Metals” or the “Company”) announces that it has filed a Form 5G with the TSX Venture Exchange (“TSXV”) and received approval to purchase at market price up to 5,135,570 common shares, being approximately 5% of the Company’s issued and outstanding common shares, by way of a normal course issuer bid (the “Bid”) through the facilities of the TSXV. As of the date hereof there are 102,711,414 Common Shares of the Company issued and outstanding. The Bid commenced on August 1, 2010 and will stay open for 12 months. The Company purchased 736,000 Common Shares under its existing Normal Course Issuer Bid over the past 12 months.
The Company is engaging in a normal course issuer bid because it believes that the market price of its Common Shares does not properly reflect the underlying value of the Company. The purpose of the bid is to reduce dilution of the Company’s shares and to enhance the potential future value of the Common Shares which remain outstanding, thus increasing long term shareholder value. Purchases connected with this Bid will conducted through Canaccord Genuity Corp.’s offices in Vancouver. The Company will pay the market price of the Common Shares at the time of acquisition and will not purchase more than 2% of the total issued and outstanding common shares within any 30 day period."
"Tongling Nonferrous Metals Group Holdings Co. Ltd. Subscribes to $18 Million Private Placement
July 26, 2010
Vancouver, British Columbia, Canada – Monday, July 26, 2010 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce that it has entered into a financing arrangement with Tongling Nonferrous Metals Group Holdings Co. Ltd. (“Tongling”) pursuant to which Tongling has subscribed, by way of a non-brokered private placement, to 31,386,224 units of Canada Zinc Metals at a price of $0.5735 per unit for gross proceeds of $18,000,000. 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 additional common share of the Company at a price of $0.675 during the first year and at a price of $0.775 during the second year.
“We are extremely pleased to see this level of investment by Tongling,” stated Mr. Peeyush Varshney, CEO of Canada Zinc Metals. “Earlier this year, Tongling retained a leading international mining consulting firm to complete an independent due diligence review of the work we have done on the Akie property to date and, clearly, a very positive report was produced.”
The proceeds of the private placement will be used to fund further exploration and advancement of the Company’s Akie zinc-lead property and for working capital and corporate purposes.
“We are pleased to be further increasing our stake in Canada Zinc Metals,” said Mr. Li Dongqing, Vice-President and Chief Engineer of Tongling. “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.
Upon completion of the private placement, Tongling will own approximately a 36% equity position in Canada Zinc Metals.
The financing is subject to receiving the necessary approvals of the Tongling board of directors, the relevant Chinese regulatory departments, the TSX Venture Exchange and the shareholders of the Company.
The financing is also subject to terms and conditions that generally accompany significant strategic investments of this nature and size.
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 outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc cut off grade).
Two similar deposits, Cirque and Cirque South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% combined zinc + lead.
In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, and several regional base metal anomalies.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.