TSX-V-listed explorer Nevada Zinc this week closed financing with InCoR Holdings at a premium of 78% above the closing price of the company’s shares on September 9.

The non-brokered private placement of common shares was completed at C$0.08 a share for proceeds of C$100 000.  

The 1.25-million shares issued pursuant to the financing, when combined with the 6.80-million shares currently owned by InCoR, results in InCoR now owning 8.05-million, or 11.0%, of Nevada Zinc’s issued and outstanding shares.

The proceeds of the financing will be used for general purposes and the advancement of the Lone Mountain zinc project in east central Nevada.

“InCoR has been a significant shareholder of Nevada Zinc for more than a year now and to have them now control more than 10% of the company is a reflection of their continuing confidence in the Lone Mountain project and the company’s management team,” says Nevada Zinc CEO Bruce Durham.

“The current financing allows us to continue to move the Lone Mountain project forward with ongoing funding participation from InCoR. InCoR also provides access to new proprietary zinc leach processing technology licensed by InCoR.”

Nevada Zinc recently announced the favourable results of a preliminary economic assessment (PEA) indicating the potential economic viability of mining the zinc mineralisation at the Lone Mountain project.

The PEA highlights strong potential economics for a low pre-production capital cost, a relatively simple, openpit mine and flotation plant operating, producing and selling zinc concentrate for 12 years based on the current mineral resources. The operating rate of the mine is planned to be a nominal 800 t/d.

Using a long-term average zinc price of $1.13/lb and an 8% discount rate the Lone Mountain project generates a pre-tax net present value of $56.4-million and a pre-tax 40% internal rate of return.