Toronto-listed project developer NorZinc on Monday announced a “significant” milestone in the advancement of the Prairie Creek project, with the closing of equity financing to progress construction of an all-season access road to the project.

The company said it closed a nonbrokered private placement of 68 451 708 shares with RCF VI CAD at $0.048363 a share, raising $3.3-million.

The proceeds from the financing would be used to progress plans on Phase 1 of an all-season road and other construction needs of the Prairie Creek project, in the Northwest Territories.

Ultimately, the road would be the first-all season road to Prairie Creek in the project’s 50-year history. The first phase of construction, known as the pioneer winter road, would reopen and cut new trails, where designated, along the access road corridor, allowing for acquisition of critical geotechnical data for subsequent road-building campaigns and to walk in key pieces of heavy equipment required for on-site early construction projects in the following summer season.

"Construction of the road is key to remaining on track with our targeted development schedule and production expected in late 2024. This transaction keeps the project progressing while we evaluate financing alternatives for complete scope of this pioneer winter road and the broader project,” said president and CEO Rohan Hazelton.

He stated that NorZinc would formally initiate an updated feasibility study in December, following initial feasibility level work completed over the past month. The study would build on the results of the October preliminary economic assessment (PEA) and would provide a higher level of detail and confidence.

The PEA incorporates an updated mineral resource estimate of 9.8-million tonnes at 22.7% zinc-equivalent, providing an economic assessment for a 2 400 t/d mine plan with a 20.3-year mine life.

The study delivered an aftertax net present value of $299-million and an aftertax internal rate of return of 17.7%, based on an initial capital expenditure of $368-million. Base case metal prices of $1.20/lb zinc, $1.05/lb lead and $24/oz silver are used.

According to the PEA, Prairie Creek will produce an average of 261-million pounds of zinc-equivalent, including 2.6-million ounces a year of silver production. The project has a payback of 4.8 years.