(TheNewswire)
December 21 , 2023 – TheNewswire - Zonte MetalsInc (TSXV:ZON) (“Zonte” or the “Company”) is pleased toannounce a non-brokered private placement for proceeds of up to$300,000 consisting of up to 770,000 common share units at a price of$0.065 and 3,125,000 flow through units at a price of $0.08 (the“Offering”), subject to TSX Venture Exchange (the “Exchange”)approval. Each Unit will consist of one common share and one sharepurchase warrant entitling the holder to acquire one additional commonshare at a price of $0.14 for a period of 24 months from the date ofissuance. The Company may consider increasing the size of theOffering depending on demand.
The net proceeds of the financing will be used forworking capital purposes and continued exploration of the Company’sexploration properties.
Eligible finders will be entitled to a Finders’ Feesin connection with securities sold pursuant to the Offering of (i)cash in an amount equal to 7% of the aggregate gross subscriptionproceeds received from the sale of securities; and (ii) Finders’Warrants equal to 7% of the number of securities sold in the Offering,each such Finders’ Warrant exercisable at any time up to 18 monthsfollowing its date of issuance to purchase one common share of theCompany at an exercise price of $0.20 per share. All Finders’ Feeswill be subject to and in accordance with Exchange and regulatorypolicies . The securities issued to the Offeringwill be subject to a four-month and one day statutory hold period.
The closing of the Offering is expected to take placeon or about December 27, 2023 or such other date(s) as may bedetermined by the Company.
Certain insiders of the Company may acquire Units inthe Offering valued at up to $20,000. Any participation by insiders inthe Offering would constitute a “related party transaction” asdefined under Multilateral Instrument 61-101 Protection of MinoritySecurity Holders in Special Transactions (“ MI 61-101 “). However, the Company expects such participation will beexempt from the formal valuation and minority shareholder approvalrequirements of MI 61-101 and intends to rely on the exemptionsavailable under the instrument.
The Company intends to use the net proceeds of theOffering for working capital purposes and exploration at the CrossHills Iron Oxide Copper Gold 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 areassitting on top of the open pit outline of the Gramalote Deposit inColombia, which is held by AngloGold Ashanti (NYSE:AU) and B2Gold(TSX:BTO, NYSE:BTG). The title issuance is being contested by thestate governing the application and the Company has started legalaction 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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