China Zirconium Limited

China Zirconium Limited

August 07, 2008 10:07 ET

China Zirconium Limited Files Final Prospectus for Public Offering in Canada

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2008) -

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China Zirconium Limited (the "Company"), a Hong Kong Stock Exchange listed company, today announces that it has received a receipt from the Ontario Securities Commission for the final prospectus dated August 1 2008 (the "Prospectus") in respect of its public offering in Canada. Due to unfavourable market conditions, the Company conducted a limited offering (the "Offering") in the provinces of Alberta, British Columbia and Ontario in order to fulfill the minimum public distribution requirement of the Toronto Stock Exchange (the "TSX"). The Company obtained a conditional approval from the TSX on May 28, 2008 for the listing of its shares on the TSX (the "TSX Listing") which provides for, among other things, the completion of the Offering as a condition of the TSX Listing. The Offering was conducted with the intention to facilitate the completion of the TSX Listing and establish the Company's presence in the North American capital markets. The Company intends to conduct a subsequent financing in Canada when the market conditions stabilize.

In conjunction with the filing of the Prospectus, the Company entered into an agency agreement dated August 1, 2008 with a syndicate of agents comprised of GMP Securities L.P., as the lead agent, Canaccord Capital Corporation, Cormark Securities Inc. and Blackmont Capital Inc. On closing of the Offering, which is expected to happen on or about August 15, 2008, 649,900 shares of the Company will be issued at a price of C$1.20 per share. The gross proceeds received by the Company from the Offering is equal to C$779,880.00. The costs of the Offering are estimated to be C$1,787,850.00 plus retail or sales commissions in the aggregate amount of C$25,346.10. The accounting treatment of the costs has not yet been determined and upon determination, will be reflected in the Company's financial statements.

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