Under the terms of the accord, Canadian Zinc will procure all of Messina’s outstanding common shares on the basis of one share of Canadian Zinc for 5.9 shares of Messina by way of a statutory plan of arrangement.
Additionally, Canadian Zinc will acquire in a non-brokered private placement financing, 3,000,000 Messina common shares at a price of $0.05 per share, for a total consideration of $150,000.
Commenting on the agreement, Canadian Zinc chief executive officer, president and chairman John Kearney said, "This acquisition of Messina is a continuation of Canadian Zinc’s strategy of building a growth focused base metal producer in North America and represents an excellent value opportunity for shareholders of both companies."
The transaction is subjected to Messina shareholders’ approval, regulatory and court approvals, and other customary closing conditions.
Messina has a 100%-interest in the Tulks South Property, which includes the Boomerang, Domino and Long Lake base and metal-rich volcanogenic massive sulphide deposits.
