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 30th 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