Fireweed Zinc Ltd. is raising up to C$5 million through a nonbrokered private placement, and Teck Resources Ltd. is participating to increase its stake in the company to 9.9% from 4.7%.
Fireweed will use the funds for exploration and development of its Macmillan Pass zinc-lead-silver property in Canada's Yukon territory and for general working capital, according to a Jan. 18 news release.
The placement will comprise 2,187,500 common shares priced at 80 Canadian cents apiece, 890,000 flow-through common shares priced at 95 cents apiece and 2,187,500 flow-through common shares priced at C$1.10 apiece through a donation agreement.
Teck will purchase 2,187,500 common shares under the offering, subject to various conditions.
A mid-2018 preliminary economic assessment of the Macmillan Pass project estimated an after-tax net present value of C$448 million, discounted at 8%, with a 24% internal rate of return.