VANCOUVER, Feb. 7, 2017 /CNW/ - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) ("the Company" or "Canadian Zinc") announces that it has appointed HCF International Advisers Limited as its adviser in securing debt financing for the construction of its Prairie Creek Zn-Pb-Ag Mine in the Northwest Territories, Canada.

HCF International Advisers Limited ("HCF") is a leading independent corporate finance advisory boutique based in London, UK and focused on the global natural resources and infrastructure sectors. HCF provides strategic and financial advice to companies and financial institutions across the complete life cycle of a project, including structuring of debt finance.

HCF has prepared a three-staged approach to source and negotiate debt financing for the Prairie Creek Mine. The preliminary stage, which is now under way, includes development of a funding strategy, appointment of an independent technical engineer, preparation of a new financial model and conducting preliminary market soundings of potential lenders. This will be followed by formal engagement with potentially interested parties and thereafter negotiation and finalization of financing documentation.

The estimated capex as reported in the Prairie Creek 2016 Preliminary Feasibility Study ("PFS") was $250 million and it is anticipated that debt financing could range up to 70% of this figure.

John F. Kearney, Chairman and CEO of Canadian Zinc, stated, "The Prairie Creek Project is on the cusp of development with a definitive feasibility study underway to support the project debt financing. We believe the appointment of an experienced, financial adviser like HCF is timely and will help guide the debt financing process to a successful conclusion."

Mark Sumner, Managing Director of HCF, stated, "We are pleased to be working with Canadian Zinc, sourcing and negotiating debt financing for the Prairie Creek Project. Our proven track record of structuring and executing debt financing transactions for a variety of projects in the natural resources sector will guide our financing work for the Prairie Creek Mine."

In this improving metal prices market, Canadian Zinc is advancing the development of the Prairie Creek Project by undertaking a Definitive Feasibility Study ("DFS"), which is expected to be completed in mid-2017.

The DFS will provide a path towards construction by addressing all the contingencies in the required detail and help to manage or reduce the various risk factors in the Project. The DFS will also follow up on a number of recommendations in the Prairie Creek 2016 PFS for further optimization and potentially enhanced economics.

Canadian Zinc has also recently engaged Ausenco to undertake project development planning services for the Prairie Creek Mine and to deliver an optimized project development plan that can be used to advance the project to production and provide a critical link to the project financing plan. The Project Execution Plan will include the development of a contract and procurement strategy. This strategy will align with the project execution schedule and will serve to support the capital cost estimate as well as execution risks and opportunities, and with the ability and capacity to convert to an Engineering Procurement and Construction Management ("EPCM") contract at the appropriate time.