(TheNewswire)
May 14, 2024 – TheNewswire - Zonte Metals Inc (TSXV:ZON) (OTC:EREPF) (“Zonte” or the “Company”) has completedits previously announced non-brokered private placement and, subjectto TSX Venture Exchange (the “Exchange”) approval, increased thesize of the offering to 4,062,220 units including 1,080,000 commonshare units at a price of $0.08 per Common Share Unit (“CS Unit”)and 2,982,220 flow through share units at a price of $0.09 perFlow-through Share Unit (“FT Units”) (together, the“Offering”), for total proceeds of $354,800. Each Unit consists ofone common share and one common share purchase warrant expiring May 3,2026. The warrants accompanying the CS Unitsare exercisable at a price of $0.11 and the warrants accompanying theFT Units are exercisable at a price of $0.15. Following completion of the Offering, the Company will have76,287,181 shares issued and outstanding.
In connection with securities sold pursuant to theOffering, the Company will pay $24,672 in cash and issue 280,578Finders’ Warrants to three Eligible Finders, all of whom are atarm’s length to the Company. Each Finders’ Warrant isexercisable until November 3, 2025, to purchase one common share ofthe Company at a price of $0.18 per share. Finders’ Fees paid inconnection with the Offering are subject to and in accordance withExchange and regulatory policies.
An insider of the Company acquired 200,000 FT Units and100,000 CS Units of the Offering for proceeds to the Company of$26,000. Any participation by insiders in the Offering constitutes a“related party transaction” as defined under MultilateralInstrument 61-101 Protection of Minority Security Holders in SpecialTransactions (“MI 61-101“). However, the Company intends to relyon the exemptions available under the instrument and suchparticipation will be exempt from the formal valuation and minorityshareholder approval requirements of MI 61-101.
All securities issued pursuant to the Offering will besubject to a four-month and one day statutory hold period.
The Company intends to use the net proceeds of theOffering for working capital purposes and exploration at the CrossHills Copper Property, in Newfoundland and Labrador.
About Zonte
Zonte Metals Inc. is a junior explorer focused on goldand copper. The Company owns 100% of the MJ project, in the TintinaGold Belt, located in the Yukon Territory, the Wings Point project inthe new Central Newfoundland Gold Belt, and the Cross Hills IOCGproject located in Newfoundland and Labrador. In Colombia; the companyhas a 25% carried interest in Project X where historic drillingintersected significant gold mineralization and the Company andpartner have an application over open areas sitting on top of the openpit outline of the Gramalote Deposit in Colombia, which is held byAngloGold Ashanti (NYSE:AU) and B2Gold (TSX:BTO, NYSE:BTG). The titleissuance is being contested by the state governing the application andthe Company has started legal action to protect its rights.
Forward-Looking Information
This news release contains forward-looking statementswhich include statements regarding the Corporation’s future plans,as well as statements regarding financial and business prospects andthe Corporation’s future plans, objectives or economic performanceand financial outlooks. The Corporation believes that the expectationsreflected in this news release are reasonable but actual results maybe affected by a variety of variables and may be materially differentfrom the results or events predicted in the forward-lookingstatements. Readers are therefore cautioned not to place unduereliance on these forward-looking statements. In evaluatingforward-looking statements readers should consider the risk factorswhich could cause actual results or events to differ materially fromthose indicated by such forward-looking statements. Theseforward-looking statements are made as of the date hereof, and unlessotherwise required by applicable securities laws, the Corporation doesnot intend nor does it undertake any obligation to update or reviseany forward-looking statements. Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy of accuracy of this release.
For further information contact:
Terry Christopher
CEO and President
902-405-3520
info@zontemetals.com
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