Thu May 26, 2011 10:34am EDT
May 26 (Reuters) - Canadian Zinc Corp cut the offer price of its $5 million bought deal by 11 percent, sending its shares down 7 percent.
The junior exploration company said Northern Securities Inc will act as the underwriter for the deal.
The company will offer 6.25 million units at 80 cents per unit. Each Unit is comprised of one common share and a half common share purchase warrant.
Each whole warrant shall be exercisable for one common share at an exercise price of $1.05 for a period of 24 months from the date of closing.
The company said the proceeds of the offering will be used for exploration and development of its mines.
The Company's main project is Prairie Creek Mine -- a zinc, lead, silver property located in the northwest territories of Canada.
The deal replaces the bought deal financing agreement of May 11 which prices units at 90 cents a share. [ID:nASA024U2]
The company's shares were down 6 cents in early morning trade on the Toronto Stock Exchange. (Reporting by Swetha Gopinath in Bangalore;Editing by Vyas Mohan) (swetha.gopinath@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 580; Reuters Messaging: swetha.gopinath.reuters.com@reuters.net))
