VANCOUVER, Feb. 14, 2018 /CNW/ - Blue Moon Zinc Corp. (TSXV: MOON; US OTC: BMOOF) (the "Company") announces the Company has closed a non-brokered private placement of $520,000 at a price of $0.10 per unit (the "Unit") with each Unit consisting of one common share and one common share purchase warrant (a "Warrant"). Each warrant shall entitle the holder thereof to acquire one common share at a price of $0.15 per share for a period of 24 months. Officers and directors purchased 27% of the financing. All common shares issued are subject to a hold period expiring four months and one day from closing in accordance with applicable securities laws. A finder's fee of $5,500 was paid in connection with the financing.
Patrick McGrath, Chief Executive officer, stated, "The proceeds will be used to advance the Company's wholly-owned Blue Moon zinc project including finalizing the drill permit for the anticipated drill program and general working capital and continued marketing efforts."
In the event the closing price of the Company's common shares exceeds $0.22 per share for ten consecutive trading days, the Company may accelerate the date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the day on which such notice is given by the Company.
The Company also granted 200,000 stock options to consultants, each option being exercisable for a five-year term at a price of $0.11 per common share. The options are governed by the terms and conditions of the Company's stock option plan.
About Blue Moon
The Company owns 100% of the Blue Moon polymetallic zinc deposit with significant credits of copper, silver and gold. The deposit is open at depth and along strike and historical metallurgical testing indicates excellent recovery and a clean zinc concentrate. A NI 43-101 report detailing the resource and summarizing metallurgical recoveries is available on the company's website (www.bluemoonmining.com) and filed on SEDAR on November 13, 2017. The Company plans to advance the Blue Moon project through to feasibility, permitting and ultimately production.
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 or accuracy of this release. Resource estimates included in this news release are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions set forth in the relevant technical report and otherwise, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for zinc, the results of future exploration, uncertainties related to the ability to obtain necessary permits, licenses and titles, changes in government policies regarding mining, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The securities referenced in this news release have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
SOURCE Blue Moon Zinc Corp.
For further information: Patrick McGrath, CEO, 1-832-499-6009, [email protected]; For additional information related to communications, media relations and investor relations please contact: Terry Bramhall, 1-604-833-6999, [email protected]