TNR Gold Corp.

TNR Gold Corp.

July 06, 2009 18:39 ET

TNR Gold Announces Strategic Investment by Canada Zinc Metals With Participation in $1 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2009) -


TNR Gold Corp. (TSX VENTURE:TNR) ("TNR" or the "Company") and Canada Zinc Metals Corp. (TSX VENTURE:CZX) are pleased to announce a strategic initial investment by Canada Zinc Metals in TNR as part of a private placement for up to 5,000,000 million units (the "Units"), priced at $0.20 per Unit, to raise up to $1,000,000 (the "Offering"). Each Unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 for a period of twelve months from the date of closing.

Canada Zinc Metals is a premiere base metals explorer focused primarily on developing its flagship Akie property, a significant zinc-lead deposit in northeastern British Columbia, Canada, containing a National Instrument 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb, and 13.0 g/t Ag. As evidence of the quality of the properties owned by Canada Zinc Metals, a large Chinese mining group, Tongling Nonferrous Metals Group Holdings Co. Ltd. ("Tongling"), has recently invested $4.9 million in Canada Zinc Metals for a 13-per-cent equity position.

Tongling, a state-owned enterprise based in Anhui province, is one of China's largest copper smelting companies and ranked in the top 100 large-scale industry enterprises in China. Tongling's principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals. China has over half of the world's deposits of rare earths, over 80% of worldwide production, and has recently shown significant interest in becoming majority shareholders of various rare earth miners such as Lynus Corp. and Arafura Resources.

TNR's Non-Executive Chairman, Mr. Kirill Klip, will be taking a significant portion of the financing along with other insiders and management.

TNR President and Executive Chairman, Gary Schellenberg states, "We are encouraged by the support in this current financing by insiders, management, and welcome the strategic investment from Canada Zinc Metals and all its stakeholders. It is clear that our recent aggressive acquisition plan of Lithium and Rare Metal properties around the world, along with continuing developments on our copper-gold properties in Argentina, is attracting significant attention in the mining and investment world."

Peeyush Varshney, Chairman and CEO of Canada Zinc Metals, commented, "This strategic investment into TNR and its proposed spinoff subsidiary, International Lithium Corp, will give our shareholders diversification into the growing opportunities that rare metal industries are offering. Furthermore, the investment gives us an interest in TNR's stake in the significant Los Azules copper project in Argentina."

A finder's fee of 7% on a portion of the proceeds raised is payable in cash, in units, or a combination of both, at the election of the finder. Any units issued in lieu of cash will be on the same terms as the Units of the Offering.

All securities issued pursuant to this financing are subject to a 4-month hold period from the date of closing. The Offering is subject to TSX Venture Exchange approval and any regulatory approvals.

Proceeds of the private placement will be used to fund the evaluation of TNR's Lithium and Rare Metal properties, implement the proposed spin-off of International Lithium Corp. and for general corporate purposes.


TNR is a diversified metals exploration company focused on identifying and exploring existing properties in Argentina and Alaska and new prospective projects globally. Upon approval of pending licences in Ireland, TNR will have a total portfolio of 32 properties, of which 16 will be included in the proposed spin-off of International Lithium Corp.

It is anticipated that TNR shareholders of record will receive one share and one full tradable warrant of International Lithium Corp. for every 4 shares of TNR held as of the yet determined record date. This will result in TNR shareholders owning shares in both TNR and International Lithium. For further details of the spin-off please refer to TNR's April 27, 2009 news release or visit

The recent acquisition of lithium projects in Argentina, Canada, USA and Ireland confirms the Company's commitment to project generation, market diversity and building shareholder value.


Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a world class zinc-lead-silver district in British Columbia, Canada. It is the dominant land holder in an extensive mineral belt known as the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Significant shareholders of Canada Zinc Metals include Lundin Mining Corp. (TSX: LUN) and Tongling Nonferrous Metals Group Holdings Co. Ltd.

On behalf of the board,

Gary Schellenberg, President

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

CUSIP: #87260X 109

SEC 12g3-2(b): Exemption #82-4434

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information