(TheNewswire)
January 2 , 2024 – TheNewswire – Dartmouth, Nova Scotia -- Zonte Metals Inc (TSXV:ZON) (“Zonte” or the“Company”) is pleased to announce that it has completed itspreviously announced non-brokered private placement and, subject toTSX Venture Exchange (the “Exchange”) approval, has issued 250,000Common Share Units at a price of $0.065 and 2,395,000 Flow-throughShare Units at a price of $0.08 (the “Offering”) for totalproceeds of $207,850. Each Unit consists of one common share and oneshare purchase warrant, expiring December 27, 2025, entitling theholder to acquire one additional common share at a price of $0.14. Following completion of the Offering, the Company has 72,224,961shares issued and outstanding.
In connection with securities sold pursuant to theOffering, Zonte will pay aggregate finders’ fees of $12,740 in cashand will issue 159,250 Finders’ Warrants to two Eligible Finders, both of whom are at arm’s length tothe Company . Each Finders’ Warrant isexercisable until June 27, 2025, to purchase one common share of theCompany at a price of $0.20 per share, subject to Exchange Approval. All Finders’ Fees are subject to and in accordance with Exchangeand regulatory policies.
All securities issued pursuant to the Offering will besubject to a four-month and one day statutory hold period.
Certain insiders of the Company (two individuals)acquired 150,000 Common Share Units and 120,000 Flow-through ShareUnits in the Offering for combined proceeds to the Company of $19,350,representing 9.3% of the Total Proceeds. Participation by insiders inthe Offering constituted a “related party transaction” as definedunder Multilateral Instrument 61-101 Protection of Minority SecurityHolders in Special Transactions (“MI 61-101“). However, asinsider participation represented less than 25% of the proceeds of theOffering, the Company relied on the exemptions available under theinstrument and such participation was exempt from the formal valuationand minority shareholder approval requirements of MI 61-101.
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 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 title issuance is being contested by the stategoverning the application and the Company has started legal action toprotect 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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