Zonte Metals Increases and Completes Non-Brokered Private Placement
Zonte Metals Increases and Completes Non-Brokered Private Placement
May 17, 2024 TSXV: ZON
Further to press releases dated May 1 and May 14, 2024, Zonte Metals Inc (TSXV: ZON) (“Zonte”
or the “Company”) is pleased to announce that it has increased the size of its previously announced
non-brokered private placement to 4,687,220 units including 1,705,000 common share units at a
price of $0.08 per Common Share Unit (“CS Unit”) and 2,982,220 flow through share units at a
price of $0.09 per Flow-through Share Unit (“FT Units”) (together, the “Offering”), for total
proceeds of $404,800. Each Unit consists of one common share and one common share purchase
warrant expiring May 3, 2026. The warrants accompanying the CS Units are exercisable at a price
of $0.11 and the warrants accompanying the FT Units are exercisable at a price of $0.15. The
transaction remains subject to TSX Venture Exchange (the “Exchange”) approval and, following
completion of the Offering, the Company will have 76,912,181 shares issued and outstanding.
In connection with securities sold pursuant to the Offering, the Company will pay $28,672 in cash
and issue 330,578 Finders’ Warrants to three Eligible Finders, all of whom are at arm’s length to
the Company. Each Finders’ Warrant is exercisable until November 3, 2025, to purchase one
common share of the Company at a price of $0.18 per share. Finders’ Fees paid in connection
with the Offering are subject to and in accordance with Exchange and regulatory policies.
The Offering was completed in three tranches which included the issuance of 3,347,220 units on
May 3, 2024, 715,000 units on May 13, 2024 and 625,000 units on May 16, 2024. All securities
issued pursuant to the Offering will be subject to a four-month and one day statutory hold period.
An insider of the Company acquired 200,000 FT Units and 100,000 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 Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions (“MI 61-101“). However, as insider participation
represented less than 25% of the proceeds of the Offering, the Company relied on the exemptions
available under the instrument and such participation was exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101.
The Company intends to use the net proceeds of the Offering for working capital purposes and
exploration at the Cross Hills Copper Property, in Newfoundland and Labrador.
About Zonte
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company owns 100% of
the MJ project, in the Tintina Gold Belt, located in the Yukon Territory, the Wings Point project
in the new Central Newfoundland Gold Belt, and the Cross Hills IOCG project located in
Newfoundland and Labrador. In Colombia; the company has a 25% carried interest in Project X
where historic drilling intersected significant gold mineralization and 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.
For further information contact:
Terry Christopher
CEO and President
902-405-3520
www.zontemetals.com