Canadian Zinc Corporation Acquires Paragon Minerals Corporation

Acted for Paragon Minerals Corporation in its acquisition by Canadian Zinc Corporation by way of a plan of arrangement.

September 24, 2012

On September 24, 2012, Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) (“Canadian Zinc”) and Paragon Minerals Corporation (TSXV: PGR) (“Paragon”) successfully completed a plan of arrangement whereby Canadian Zinc acquired all of the issued and outstanding common shares in the capital of Paragon that it did not already own. Pursuant to the terms of the Arrangement, shareholders of Paragon (other than Canadian Zinc) received 0.136 common shares in the capital of Canadian Zinc for each Paragon share held.

Paragon’s flagship project is its South Tally Pond Property, which includes the Lemarchant precious metal-rich, copper-lead-zinc Volcanogenic Massive Sulphide (“VMS”) deposit, located in a proven mining district near Buchans, Newfoundland. Canadian Zinc is a TSX-listed mining exploration and development company, and its main project is the 100%-owned Prairie Creek zinc, silver and lead project located in the Northwest Territories.

As part of the transaction, Canadian Zinc also made an initial $490,000 private placement equity financing into Paragon.

Paragon was represented by Davis LLP in Vancouver, with a team led by Don Collie (Securities and Mining) which included Elaine Tham and Tony Anderson (Securities), Mike Coburn and Paul Lailey (Tax), Brent MacLean and Jeff Horswill (Litigation), and Angeline Nyce (Aboriginal Law and First Nations).

To view the official press release of this transaction, please click here.