TSXV: ZON
HALIFAX, Jan. 6, 2020
/CNW/ - Zonte Metals Inc (TSXV: ZON) ("Zonte" or the
"Company") announces that it has completed its previous announced
non-brokered private placement after further increasing the
financing to $1.5 million consisting
of 4,183,167 flow through shares at a price of $0.30 and 1,157,935 Units at a price of
$0.23 (the "Offering") for total
proceeds of $1,521,275, subject to
TSX Venture Exchange (the "Exchange") approval. Each Unit
will consist of one common share and one-half (½) of one share
purchase warrant, with each whole warrant entitling the holder to
acquire one additional common share at a price of $0.35 until June 20,
2021. If the closing share price of the common shares on the
TSX Venture Exchange is greater than $0.50 per common share for a period of 20
consecutive trading days at any time following the issuance of the
Warrants, the Company may accelerate the expiry date of the
Warrants by issuing a press release announcing the reduced warrant
term whereupon the Warrants will expire on the 30th calendar day
after the date of the press release. The securities issued
pursuant to the Offering will be subject to a four-month and one
day statutory hold period.
In connection with the private placement, Zonte will pay
finders' fees to Eligible Finders of $86,389 in cash and will issue 299,517 Finders'
Warrants to Eligible Finders. Each Finders' Warrant is exercisable
until June 20, 2021 to purchase one
common share of the Company at an exercise price of $0.35 per share, subject to Exchange approval.
If the closing share price of the common shares on the TSX
Venture Exchange is greater than $0.50 per common share for a period of 20
consecutive trading days at any time following the issuance of the
Finders' Warrants, the Company may accelerate the expiry date of
the Finders' Warrants by issuing a press release announcing the
reduced warrant term whereupon the Finders' Warrants will expire on
the 30th calendar day after the date of the press
release. All Finders' Fees will be subject to and in
accordance with Exchange and regulatory policies and the securities
issued pursuant to the Offering will be subject to a four-month and
one day statutory hold period.
The Company intends to use the net proceeds of the Offering for
exploration at Cross Hills Iron Oxide Copper Gold Property, in
Newfoundland and Labrador and general corporate purposes.
About Zonte
Zonte Metals Inc. is a junior explorer focused on gold and
copper. The Company has signed Option Agreements to acquire 100% of
the McConnells Jest project, in the Tintina Gold Belt, located in
the Yukon Territory and the Cross
Hills IOCG project located in Newfoundland; and holds a 100% interest in the
drill ready Wings Point Gold Project also located in
Newfoundland. In addition, the Company and partner have an
application over open areas sitting on top of the open pit outline
of the Gramalote Deposit in Colombia, which is held by AngloGold Ashanti
(NYSE:AU) and B2Gold (TSX:BTO, NYSE:BTG). The title issuance is
being contested by the state governing the application and the
Company has started legal action to protect its rights.
Forward-Looking Information
This news release contains forward-looking statements which include
statements regarding the Corporation's future plans, as well as
statements regarding financial and business prospects and the
Corporation's future plans, objectives or economic performance and
financial outlooks. The Corporation believes that the expectations
reflected in this news release are reasonable but actual results
may be affected by a variety of variables and may be materially
different from the results or events predicted in the
forward-looking statements. Readers are therefore cautioned not to
place undue reliance on these forward-looking statements. In
evaluating forward-looking statements readers should consider the
risk factors which could cause actual results or events to differ
materially from those indicated by such forward-looking statements.
These forward-looking statements are made as of the date hereof,
and unless otherwise required by applicable securities laws, the
Corporation does not intend nor does it undertake any obligation to
update or revise any forward-looking statements. Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy of accuracy of this release.
SOURCE Zonte Metals Inc.