Zincore Amends Terms of Private Placement Financing
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. June 8, 2011 – Zincore Metals Inc. (TSX and BVL: ZNC) (“Zincore” or the “Company”) reports that, due to adverse market conditions following the recent Presidential election in Peru, it is revising the terms of the brokered private placement of units originally announced on May 24, 2011. Under the revised terms, the Company will seek to raise gross proceeds of up to $6.4 million on a best efforts basis. Units will be priced at $0.28 per unit and will be comprised of one common share and one-half common share purchase warrant (“Warrants”). The Warrants will be non-transferable and each whole Warrant will entitle the holder to purchase one common share at a price of $0.40 for up to 36 months. Dundee Securities Ltd. is acting as the sole agent on this financing.
Zincore CEO and President, Jorge Benavides, commented “The result of the recent Presidential election in Peru has created significant short term volatility in the market. For this reason, it has become necessary for us to amend the terms of our proposed financing. The fact that we are still raising these funds to carry out our programs in Peru is a testament to our belief that Peru will remain a good place to do business.”
The net proceeds of the offering will be used to fund the development of Zincore’s mineral properties in Peru and for general corporate purposes.
The common shares issued with respect to this offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
The closing of this offering is expected to occur on or about June 15, 2011 and is subject to receipt of all necessary regulatory approvals including that of the Toronto Stock Exchange.
Any participation by insiders of the Company in the Offering, which participation will be subject to the approval of the independent directors of the Company, will be on the same terms as the arm’s length investors and at or below their current pro-rata percentage ownership.
This press release is not an offer of securities for sale in the United States. The common shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.
About Zincore
Zincore is a Vancouver-based mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada. The Company's common shares trade on both the Toronto and Lima Stock Exchanges under the symbol ZNC. For more information, please see our website at www.zincoremetals.com.
Forward-looking Statements: Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Annual Information Form of Zincore dated March 18, 2011 which is filed with Canadian securities regulatory authorities and available on SEDAR (www.sedar.com). Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
For more information, please contact:
Zincore Metals Inc.
Adam Ho, Manager, Investor Relations (604) 669-6611 ext. 106 [email protected] www.zincoremetals.com