Canadian zinc development company ScoZinc Mining has closed the first C$500 000 tranche of its previously announced nonbrokered private placement.

The company placed units at C$0.30 to raise the proceeds, which it will use to complete the National Instrument 43-101 prefeasibility study (PFS) for the Scotia mine, near Halifax, Nova Scotia.

“Despite the difficult situations our personnel and independent experts are all facing due to the Covid-19 pandemic, the teams remain focused on finalising the PFS in a matter of weeks,” president and CEO Mark Haywood states.

The Scotia mine is currently on care and maintenance, and ScoZinc aims to develop it into a low-cost, long-life base metals operation.

The first tranche is subject to the company's option to increase the size of the private placement by up to an additional C$500 000.

Each unit of the first tranche consists of one common share of the company and a common share purchase warrant. Each full warrant is exercisable into a common share at a price of C$0.50 apiece for a period of 24 months.

The first tranche consisted in the sale of 1 678 011 units for gross proceeds of C$503 403.30.

ScoZinc Mining exercised its overallotment option and expects to close subsequent tranches of the offering in the coming weeks. The net proceeds of the offering will be used to advance the development of the company's Scotia mine and for general corporate purposes.

In connection with the first tranche, ScoZinc Mining has paid C$12 950.07 in cash compensation and issued 43 167 compensation warrants to eligible finders for their assistance with the first tranche. Each compensation warrant is exercisable into a common share for a period of 24 months.

All securities issued pursuant to the offering will be subject to a four-month-and-one-day hold period applicable under Canadian securities laws.

“ScoZinc is especially pleased with the support we have received from investors in this private placement over extremely challenging market conditions and a period of unprecedented world disruption,” concludes Haywood.