NorZinc agrees to cash-offer to continue Prairie Creek development

Prairie Creek, Northwest Territories

Prairie Creek, Northwest Territories

3rd October 2022

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


Font size: - +

Canadian zinc and lead developer NorZinc on Friday agreed to a cash offer from private equity group  RCF VI (RCF) to maintain the current development work at its Prairie Creek project, in the Northwest Territories.

RCF will buy NorZinc for C$0.0325 a share in cash, which represents a 3.5% premium to the 45-day volume-weighted average price of $0.0314 a share. RCF and its affiliates currently hold about 48.31% of the outstanding shares of the company.

At the same time, NorZinc and RCF have amended and restated a credit facility, providing for an increase in the commitment by $11-million.

“The company has been working to address challenges with respect to its debt situation and the capital funding needs given the current market conditions,” said president and CEO Rohan Hazelton.

“The board has explored all viable strategic alternatives. Ultimately, it has concluded that the unsolicited all-cash offer to the minority shareholders contained within the arrangement agreement is in the best interest of the company and its stakeholders,” he said.

The Prairie Creek project last week achieved key permitting milestones, having received its water licence from the Northwest Territories government. Combined with the receipt of the land use permit, announced in mid-August, NorZinc has now completed the permitting process for mining operations at Prairie Creek.

Based on the preliminary economic assessment completed in October 2021 and the envisioned mining rate of 2 400 t/d, the project results in an net present value, using an 8% discount, $299-million with average earnings before interest, tax, depreciation and amortisation of $123-million a year

NorZinc expects Prairie Creek to deliver more than $8-billion in  economic activity to the region over its 20-year mine life.

The company continues to work with the regulatory bodies, Parks Canada and the Mackenzie Valley Land and Water Board, on the completion and final approval of the management plans associated with construction of Phase 1 of the all-season road. NorZinc expects to receive all Phase 1 approvals from the respective regulators in October.

Edited by Creamer Media Reporter



Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...


Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...


Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (07/06/2024)
7th June 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.283 0.317s - 94pq - 2rq
1: United States
Subscribe Now
2: United States