Canadian Zinc Corp. said May 29 that it will ask shareholders to approve a proposed restructuring, which will split the company into two separate entities, during the upcoming annual general and special meeting in June.
One of the companies will be a publicly listed holding corporation to be named NorZinc Ltd., while the other will be a directly owned operating subsidiary. This arrangement aims to structure the company's assets to facilitate future financing for the Prairie Creek zinc project in Canada's Northwest Territories.
The Prairie Creek project, along with all of Canadian Zinc's assets, agreements and permits in place, will be consolidated under the operating subsidiary as talks with financial institutions confirmed that raising debt financing for the project would require Prairie Creek to be held in a separate stand-alone entity, with the public parent company to act as project sponsor.
Once the reorganization is complete, Canadian Zinc shares will be exchanged for NorZinc shares on a 1-for-1 basis. NorZinc shares are expected to take Canadian Zinc's CZN ticker on the Toronto Stock Exchange and CZICF on the OTCQB.
