Canada Zinc Metals Corp. Closes Private Placement
October 3, 2008
Vancouver, B.C. – October 3, 2008 – Canada Zinc Metals Corp. (TSX Venture: CZX; Frankfurt: AOF7E1) (the "Company") is pleased to announce that, further to its news release dated September 15, 2008, it has received final TSX Venture Exchange acceptance with respect to the closing of its non-brokered private placement, raising $6,077,400. The financing was increased due to high demand to 6,752,667 flow-through shares at a price of $0.90 per share.
The proceeds are for the exploration of the Akie SEDEX zinc-lead property and of the balance of the Company’s portfolio of mineral holdings (87,911 hectares), located within the highly prospective Kechika Trough SEDEX zinc-lead basin of northeastern
. The Company shall pay $274,170 in cash as finder’s fees on a portion of the private placement. The securities issued are subject to a four month hold period expiring February 3, 2009.
About the Akie Property
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals Corp. in 2005, 2006 and 2007 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company recently filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade). The complete NI 43-101 technical report, titled “Geology, Diamond Drilling and Preliminary Resource Estimation, Akie Zinc-Lead-Silver Property, Northeast British Columbia,
”, dated May 30, 2008, can be viewed on SEDAR.
Two similar deposits, Cirque and South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
Chief executive officer