(TheNewswire)
May 17 , 2024 – TheNewswire - Further to press releasesdated May 1 and May 14, 2024, Zonte Metals Inc (TSXV: ZON)(“Zonte” or the “Company”) is pleased to announce that it hasincreased the size of its previously announced non-brokered privateplacement to 4,687,220 units including 1,705,000 common share units ata price of $0.08 per Common Share Unit (“CS Unit”) and 2,982,220flow through share units at a price of $0.09 per Flow-through ShareUnit (“FT Units”) (together, the “Offering”), for totalproceeds of $404,800. Each Unit consists of one common share and onecommon share purchase warrant expiring May 3, 2026. The warrants accompanying the CS Units are exercisable at aprice of $0.11 and the warrants accompanying the FT Units areexercisable at a price of $0.15. Thetransaction remains subject to TSX Venture Exchange (the“Exchange”) approval and, following completion of the Offering, the Company will have 76,912,181shares issued and outstanding.
In connection with securities sold pursuant to theOffering, the Company will pay $28,672 in cash and issue 330,578Finders’ 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.
The Offering was completed in three tranches whichincluded the issuance of 3,347,220 units on May 3, 2024, 715,000 unitson May 13, 2024 and 625,000 units on May 16, 2024. All securities issued pursuant to the Offering will besubject to a four-month and one day statutory hold period.
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, as insider participationrepresented less than 25% of the proceeds of the Offering, the Companyrelied on the exemptions available under the instrument and suchparticipation was exempt from the formal valuation and minorityshareholder 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 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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