Scozinc Announces the Closing of the Third & Final Oversubscribed Tranche of Its C$1,150,000 Non-Brokered Private Placement
-1-
SCOZINC ANNOUNCES THE CLOSING OF THE THIRD & FINAL OVERSUBSCRIBED
TRANCHE OF ITS C$1,150,000 NON-BROKERED PRIVATE PLACEMENT
Halifax, Nova Scotia, May 29, 20 20 – ScoZinc Mining Ltd. ( TSX-V: SZM ) (“ ScoZinc” or the
“Company”) is pleased to announce it has closed its third and final tranche of its non-brokered private placement.
The President and CEO, Mr. Mark Haywood, stated: “Due to overwhelming demand for our equity financing, we closed
our private placement today, which was effectively sold out by 130%. We are now fully financed to conclude our
previously announced P re-Feasibility Study (“ PFS”) and to commence sourcing the capital required to re -start our
Scotia Mine once the NI 43-101 Technical Report has been released. Although we eagerly await the results of the PFS,
we recognise the severe disconnect between the implied replacement value of our fully permitted mine and mill at over
C$100 million, and our current market capitalization of approximately C$7 million at the close of trading on the TSX.V
today. We adamantly believe that the completion of a positive PFS will contribute to a re-rating of ScoZinc’s valuation
in the marketplace.”
The closing of this third an d final tranche (the “ Third Tranche”) of the previously announced private placement on
March 19, 2020, April 3, 2020, April 22, 2020, May 22, 2020 and May 26, 2020, for a non-brokered private placement
of units of the Company (“Units”) at C$0.30 per Unit, is for aggregate gross proceeds of up to C$1,150,000. Each Unit
consists of one common share of the Company (a “ Common Share ”) and a Common Share purchase warrant (a
“Warrant”). Each full Warrant is exercisable into a Common Share at a price of C$0.50 per Common Share for a period
of twenty-four (24) months.
The first tranche (the “First Tranche”) closed on April 22, 2020 and consisted of the sale of 1,678,011 Units for gross
proceeds of C$503,403.30, and the second tranche (the “Second Tranche”) closed on May 22, 2020 and consisted of
the sale of 1,645,368 Units for gross proceeds of C$493,610.40.
The Third Tranche consisted of the sale of 509,954 units for the gross proceeds of C $152,986.20. The overall net
proceeds of the Offeri ng will be used to advance the development of the Company’s Scotia Mine and for general
corporate purposes. The Third Tranche, the Second Tranche and the First Tranche comprise the Offering consisting of
the sale of an aggregate of 3,833,333 Units for aggregate gross proceeds of C$1,150,000.
The Company also wishes to advise that it has lowered the cash compensation amount paid to eligible finders in
connection with the closing of the Second Tranche of the financing, as the Company only paid C$3,954.30 in cash
compensation as opposed C$9,954.30 as announced in its May 22, 2020 news release . In connection with the Third
Tranche, the Company has paid C $1,855.04 in cash compensation and issued 6,183 compensation warrants (the
“Compensation Warrants”) to eligible finders for their assistance with the Third Tranche. Each Compensation Warrant
is exercisable into a Common Share for a period of twenty-four (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.
Certain directors, officers and other insiders of the Company (collectively the “ Insiders”) have acquired a total of
323,286 Units pursuant to the Third Tranche. The participation of Insiders in the Third Tranche constitutes a "related
party transaction", as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders
NEWS RELEASE MAY 29, 2020
-2-
in Special Transactions and Companion ("MI 61 -101"). The Company is relying on exemptions from the formal
valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that the participation
in the Third Tranche by Insiders does not exceed 25% of the fair market value of the Company’s market capitalization.
In connection with the Third Tranche, Mr. Ashwath Mehra, a director of the Company, has acquired 273,334 Units.
Immediately prior to the closing of the Third Tranche, Mr. Mehra held directly and indirectly 1,265,000 Common Shares,
1,065,000 common share purchase warrants of the Company and 40,000 options to purchase Common Shares, or
approximately 16.14% of the then 13,574,840 issued and outstanding Common Shares on the partially diluted basis.
Following the closing of the Third Tranche, Mr. Mehra holds 1,538,334 Common Shares, 1,338,334 common purchase
warrants of the Company and 40,000 options to purchase Common Shares (a total of 2,916,668 Common Shares) or
approximately 18.86% of the total number of issued and outstanding Common Shares on a partially diluted basis. The
Units were acquired by Mr. Mehra for investment purposes, and depending on market and other conditions, Mr. Mehra
may from time to time in the future increase or decrease his respective ownership, control or direction over securities of
the Company, through market transactions, private agreements, or otherwise. For the purposes of this notice, the address
of Mr. Mehra is Gubelstrasse 24, 6300 Zug, Switzerland.
In satisfaction of the requirements of the National Instrument 62 -104 - Take-Over Bids and Issuer Bids and National
Instrument 62-103 - The Early Warning System and Related Take -Over Bid and Insider Reporting Issues, an Early
Warning report respecting the acquisition of Units by Mr. Mehra will be filed under the Company’s SEDAR Profile at
www.sedar.com.
The Offering is subject to final TSX Venture Exchange approval.
About ScoZinc Mining Ltd.
ScoZinc is a Canadian development company that has full ownership of the Scotia Mine (Zn/Pb) and related facilities
near Halifax, Nova Scotia . ScoZinc also holds s everal prospective exploration licenses nearby its Scotia Mine and in
surrounding regions of Nova Scotia.
The Company’s common shares are traded on the TSX Venture Exchange under the symbol “SZM”.
For more information, please contact:
Mark Haywood President & Chief Executive Officer
Robert Suttie Chief Financial Officer
Simion Candrea VP Investor Relations
Head Office Purdy’s Wharf, 1959 Upper Water Street, Suite 1301, Nova Scotia, B3J 3N2, Canada
Telephone +1 (902) 482 4481
Facsimile +1 (902) 422 2388
Email [email protected]
Web www.ScoZinc.com
The Company’s corporate filings and technical reports can be viewed on the Company’s SEDAR profile at
www.sedar.com. Further information on ScoZinc is also available on Facebook at www.facebook.com/ScoZinc, Twitter
at www.twitter.com/ScoZincMining, and LinkedIn at www.linkedin.com/company/scozinc-mining-ltd.
CAUTIONARY STATEMENTS
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain forward-looking statements which are not comprised of historical facts. Forward-
looking statements include estimates and statements that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company or management expects a stated condition or result to occur. Forward-
looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”,
-3-
“would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could
cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in this news release includes, but is not
limited to, the Company’s objectives, goals or future plans, statements, potential mineralization, exploration and
development results, the estimation of mineral resources, exploration and mine development plans, timing of the
commencement of operations and estimates of market conditions. In particular, the Company has not made a production
decision with respect to ScoZinc’s Scotia Mine. The Company has not completed a feasibility study or established the
economic viability of the Project or proposed operations on ScoZinc’s Scotia Mine, and no mineral reserves have been
established for ScoZinc’s Scotia Mine that would support a production decision. Mineral exploration projects which are
put into production without first establishing mineral reserves and completing a feasibility study have historically had a
higher risk of economic or technical failure. There can be no assurance that forward-looking statements will prove to be
accurate and actual results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from ScoZinc’s expectations include, among others, ability to
complete the PFS, ability to complete the Offering on the terms announced, availability and costs of financing needed
in the future, changes in equity markets, risks related to international operations, the actual results of current exploration
activities, delays in the development of projects, conclusions of economic evaluations and changes in project parameters
as plans continue to be refined as well as future prices of metals, ability to predict or counteract potential impact of
COVID-19 coronavirus on factors relevant to the Company’s business, as well as those factors discussed in the section
entitled “Risk Factors” in ScoZinc’s Management’s Discussion and Analysis. Although ScoZinc has attempted to
identify important factors that could cause actual results to differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements.