The private placement closed for gross proceeds of $4,503,427, made up of 5,003,808 common shares at $0.90 per share. The financing, which was originally announced at $3.6 million, was oversubscribed due to high demand.

Proceeds from the financing will be used for the exploration and development of Fireweed Zinc’s Macmillan Pass Project in the Yukon. Specifically, the company will incur exploration expenses that will qualify as flow-through mining expenditures under the Income Tax Act.

The 940 square kilometre Macmillan Pass project hosts the Tom and Jason zinc-lead-silver deposits with a current mineral resource estimate including indicated resources of 11.21 tonnes and inferred resources of 39.47 tonnes, according to a 2018 press release from the company.

The project also includes the Boundary Zone, Tom North Zone, and End Zone, which have significant zinc-lead-silver mineralization but are not yet classified as mineral resources.

Fireweed Zinc has agreed to pay finders fees to arm’s length finders under the financing, totalling $55,599.85 and 56,669 warrants.

The company has also agreed to issue 20,000 hares to an arm’s length party for corporate finance services.

The final closing of the financing is subject to approval from the TSXV.

Fireweed Zinc is a public mineral exploration company focused on zinc-lead-silver assets and managed by a veteran team of mining industry professionals.

Fireweed Zinc (FWZ) opened trading up 1.37 per cent at $0.74 per share.