VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) - Canadian Zinc Corporation ("Canadian Zinc") (TSX:CZN) is pleased to announce it has entered into a private placement financing arrangement (the "Offering"), led by Octagon Capital Corporation ("Octagon") on an agency basis, for gross proceeds of a minimum $2,000,000 of flow-through shares and a maximum of up to $5,000,000 of flow-through shares at a price of $0.55 per flow-through share. Octagon will receive a commission fee of 8% in cash of the gross proceeds of the Offering and 8% in the number of Offering Securities exercisable for 2 years.
The proceeds received from the private placement will be used to incur Canadian Exploration Expense ("CEE") and will be used to fund further exploration at the Prairie Creek Mine along with future possible property acquisitions in Canada. The completion of the private placement is subject to approval by the Toronto Stock Exchange and other regulatory agencies. Closing is anticipated on or about October 20, 2005.
Canadian Zinc holds a 100% interest in the Prairie Creek Mine Project located in the Northwest Territories. The site includes a near complete mine, mill and surrounding infrastructure along with an open-ended lead-zinc-silver resource. Canadian Zinc Corporation trades on the Toronto Stock Exchange under the symbol "CZN" and currently has 69,783,755 common shares issued and outstanding.
A more extensive description of the Company's activities is available on the Company's web site at www.canadianzinc.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Zinc Corporation
John MacPherson
Director
(604) 697-5683
Canadian Zinc Corporation
Alan Taylor
Vice President Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free:1-866-688-2001
(604) 688-2043 (FAX)
invest@canadianzinc.com
www.canadianzinc.com
