Canada Zinc Metals Corp. says it has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. that the Chinese company has received regulatory approval to make a further investment in the Canadian zinc junior mining company.
In 2009, Tongling purchased a 13-per-cent stake in Canada Zinc for $4.9 million.
In this latest transaction, Tongling is making an $18 million investment, raising its stake in the company to 36.5 per cent.
Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies.
Tongling's principal activities are exploration, mining, ore processing, smelting and refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals.
Canada Zinc has active exploration underway on its Akie property in northern B.C.
The exploration project - where the company is seeking to determine the extent of zinc and lead deposits - is located about 245 kilometres north of Mackenzie, and north of the tip of Williston Lake.
The Akie claim block covers 6,400 hectares and hosts the Cardiac Creek deposit, which is now road accessible.
Mineral exploration in the province - and particularly in north and central B.C. - hit record levels in 2007 and 2008. However, because of the global financial crisis, exploration levels dropped in 2009. They are expected to rebound in 2010.
Northern communities have been hoping that mining jobs could offset employment losses in the forest sector. Prince George, in particular, is considered a supply and service centre for the mining sector in northern B.C.
