VANCOUVER - Canadian Zinc Corp. (TSX:CZN) is preparing to acquire the South Tally Pond property in central Newfoundland through a business combination with Paragon Minerals Corp. (TSXV:PGR).
Paragon's flagship property is near Buchans, N.L., adjacent to the Duck Pond copper and zinc mine and mill complex owned by Vancouver-based mining giant Teck Resources Ltd. (TSX:TCK.B).
Canadian Zinc says it will exchange 0.136 of a CZN share for each share of Paragon. The combined company would be owned 95.5 per cent by Canadian Zinc shareholders and 4.5 per cent by Paragon shareholders.
Based on Monday's closing market price, the offer is worth 5.2 cents per share, valuing Paragon's equity at $2.8 million.
Canadian Zinc shares closed Monday at 38 cents, giving the Vancouver-based company a market value of nearly $60 million.