Zephyr Announces Private Placement and Provides Update
ZEPHYR ANNOUNCES PRIVATE PLACEMENT
AND PROVIDES UPDATE
Trading Symbol: TSX-V: ZFR OTC-ZPHYF
Shares Outstanding: 67,086,985
HALIFAX, NS
,
Nov. 28, 2022
/CNW/ -
Zephyr Minerals Ltd.
(TSXV: ZFR) ("
Zephyr
" or the
"
Company
") is pleased to announce it intends to issue, by way of a non-brokered private placement
financing, up to 4,000,000 units at a price of
$0.08
per unit for gross proceeds of up to
$320,000
(the "Financing"). Each Unit consists of one common share and one whole common share purchase
warrant (a "Warrant") of the Company (the "Units"). Each Warrant will be exercisable to purchase
one common share of the Company for
$0.12
for a period of twelve months from the closing date.
The expiry date of the Warrants may be accelerated by Zephyr at any time if the volume-weighted
average trading price of the common shares is greater than or equal to
$0.24
for any 20 consecutive
trading days. If this occurs, the Company may accelerate the expiry date of the warrants by issuing
a press release announcing the reduced Warrant term whereupon the Warrants will expire on the
30
th
calendar day after the date of such press release.
Net proceeds from the funds raised will be used to evaluate and pursue mineral opportunities in
Zimbabwe
, and for general working capital purposes. In connection with the offering, a finder's fee
may be paid consisting of a cash commission equal to 7% of the gross proceeds raised under the
offering and that number of nontransferable finder's fee warrants as is equal to 7% of the number of
shares. Each finder's fee warrant will be exercisable into one common share of the Company at
$0.12
per share, for a period of twelve months from the closing date. The expiry date of the finder's
warrants are also subject to the same acceleration clause as the Unit warrants.
The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary
approvals including the approval and acceptance by the TSX Venture Exchange. All securities to be
issued pursuant to the Financing will be subject to a four month hold period.
Update
The Company is waiting for two Exclusive Prospecting Orders ("EPO") applied for in 2021 in
Zimbabwe
to be granted. The EPO applications are in the final stage of processing which, upon
completion will be submitted to the President of
Zimbabwe
for approval and signature. Timing
remains uncertain, however the Company is hopeful that they will be granted by year end. The two
EPO applications combined cover approximately 124,000 hectares of mineral prospective areas.
Concurrently, the Company is continuing to evaluate mineral properties in
Zimbabwe
for potential
acquisition, option or joint venture. A number of high potential mineral properties have been identified
which are in various stages of negotiation. Preference is given to gold properties with the potential
for high tonnage open pit resources.
In the second quarter, the Company entered into an option agreement to acquire a 75% interest in
the 40 hectare Chikonga Gold Mine Property from a privately owned arm's length
Zimbabwe
company. See Company news release of
May 9, 2022
for additional details. The agreement is
subject to satisfactory due diligence which is anticipated to be concluded early in Q1- 2023.
Following a review of relevant technical data, the Company elected to abandon low priority areas of
its
Colorado
holdings, thereby reducing its total number of unpatented claims from 140 to 78. In
addition, on
November 7, 2022
, the Company entered into a sale agreement with an arm's length
third party with respect to the 10 acre patented claim at Green Mountain. Based on the current
Dawson
mine permitting exercise it has become evident that the sulphidic mineralization at Green
Mountain would be problematic to permit for treatment at
Dawson
where the mineralization is
environmentally benign in comparison. As such, the Company's focus in
Colorado
will be the high
priority areas which are being retained, being the core holdings at the
Dawson
and El Plomo
sections of the property portfolio. The property will henceforth be referred to as the
Dawson
-El
Plomo property.
About Zephyr Minerals Ltd.
Zephyr Minerals Ltd. is active in mineral exploration in
Colorado, USA
and
Zimbabwe
. In Colorado
Zephyr has been focused on mine permitting activities at its 100% owned
Dawson
gold property,
which is presently in hiatus pending the collection and submission of additional water well data and
satisfying certain other environmental related questions. The additional required water wells are still
in the planning stage and will be drilled once available funds are in hand. Upon collection of the
additional data the Company plans to reapply for a mining permit at
Dawson
.
In
Zimbabwe
the Company is working to build a mineral property portfolio and to this end has
applied for two Exclusive Prospecting Orders covering 124,000 hectares. Zephyr is actively
assessing additional mineral opportunities in
Zimbabwe
on an ongoing basis.
Zimbabwe
boasts
favourable foreign ownership rules for mineral properties as well as prospective, underexplored
Archean greenstone belts.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. The forward-looking statements contained in this document are based on certain key
expectations and assumptions made by the Company. The forward-looking statements contained
in this document are made as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable securities laws.
SOURCE
Zephyr Minerals Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/November2022/28/c9953.html
%SEDAR: 00030509E
For further information:
Loren Komperdo, President & CEO or Will Felderhof, Executive Chairman,
T: 902 706-0222, [email protected]
CO: Zephyr Minerals Ltd.
CNW 13:00e 28-NOV-22