Zonte Metals Completes a $1.25 Million Non- Brokered Private Placement
Zonte Metals Completes a $1.25 Million Non-
Brokered Private Placement
TSXV: ZON
HALIFAX
, Dec. 23, 2019 /CNW/ - Zonte Metals Inc (TSXV: ZON) ("Zonte" or the "Company") has
completed a
$1.25 million
financing consisting of 4,166,667 flow through shares at a price of
$0.30
(the "Offering") for total proceeds of
$1,250,000
, subject to TSX Venture Exchange (the
"Exchange") approval. The securities issued pursuant to the Offering will be subject to a four-month
and one day statutory hold period.
In connection with the private placement, Zonte will pay finders' fees to Eligible Finders of
$75,000
in
cash, equal to 6% of the aggregate gross subscription proceeds received from the sale of securities
from Eligible Finders; and will issue 250,000 Finders' Warrants. Each Finders' Warrant is exercisable
at any time up to 18 months following its date of issuance to purchase one common share of the
Company at an exercise price of
$0.35
per share, subject to Exchange approval. If the closing
share price of the common shares on the TSX Venture Exchange is greater than
$0.70
per common
share for a period of 20 consecutive trading days at any time following the issuance of the Finders'
Warrants, the Company may accelerate the expiry date of the Finders' Warrants by issuing a press
release announcing the reduced warrant term whereupon the Finders' Warrants will expire on the
30
th
calendar day after the date of the press release. All Finders' Fees will be subject to and in
accordance with Exchange and regulatory policies and the securities issued pursuant to the Offering
will be subject to a four-month and one day statutory hold period.
The Company intends to use the net proceeds of the Offering for exploration at the Cross Hills Iron
Oxide Copper Gold Property, in
Newfoundland
and
Labrador
. The current drill program will extend
through the winter and additional exploration over yet unexplored areas will be completed.
About Zonte
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company has signed Option
Agreements to acquire 100% of the McConnells Jest project, in the Tintina Gold Belt, located in the
Yukon Territory
and the Cross Hills IOCG project located in
Newfoundland
; and holds a 100%
interest in the drill ready Wings Point Gold Project also located in Newfoundland. In addition, the
Company and partner have an application over open areas sitting on top of the open pit outline of the
Gramalote Deposit in
Colombia
, which is held by AngloGold Ashanti (NYSE:AU) and B2Gold
(TSX:BTO, NYSE:BTG). The title issuance is being contested by the state governing the application
and the Company has started legal action to protect its rights.
Forward-Looking Information
This news release contains forward-looking statements which include statements regarding the
Corporation's future plans, as well as statements regarding financial and business prospects and the
Corporation's future plans, objectives or economic performance and financial outlooks. The
Corporation believes that the expectations reflected in this news release are reasonable but actual
results may be affected by a variety of variables and may be materially different from the results or
events predicted in the forward-looking statements. Readers are therefore cautioned not to place
undue reliance on these forward-looking statements. In evaluating forward-looking statements
readers should consider the risk factors which could cause actual results or events to differ
materially from those indicated by such forward-looking statements. These forward-looking
statements are made as of the date hereof, and unless otherwise required by applicable securities
laws, the Corporation does not intend nor does it undertake any obligation to update or revise any
forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy of accuracy of this release.
www.zontemetals.com
SOURCE
Zonte Metals Inc
View original content:
http://www.newswire.ca/en/releases/archive/December2019/23/c3345.html
%SEDAR: 00029601E
For further information:
Terry Christopher, CEO and President, 902-405-3520,
CO: Zonte Metals Inc
CNW 09:05e 23-DEC-19