BEDFORD, NS, Dec 16, 2015 /CNW/ - Zonte Metals Announces a Private Placement and Provides Update On The Gramalote Target Application.
Zonte announces that it plans to raise up to $100,000 through a non-brokered private placement that will include up to 1,176,500 units (the "Units") at a price of $0.085 per Unit (the "Offering"), subject to TSX Venture Exchange (the "Exchange") approval. Each Unit will consist of one common share and one full share purchase warrant, with each warrant entitling the holder to acquire one additional common share at a price of $0.16 for a period of 24 months from the date of the issuance.
Eligible finders will be entitled to a Finders' Fees in connection with the securities sold pursuant to the Offering of (i) cash in the amount of 8% of the aggregate gross subscription proceeds received from the sale of securities; and (ii) Finder's Warrants equal to 8% of the number of securities sold in the Offering, each such Finders' Warrant 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 $0.16 per share. All Finders' Fees will be subject to and in accordance with Exchange and regulatory policies. The Company intends to use the net proceeds of the Offering for working capital purposes. The securities issued pursuant to the Offering will be subject to a four-month and one day statutory hold period.
As previously announced on November 19, 2015, Zonte, with its Colombian Partner, has retained legal counsel to pursue its mineral title application that covers open areas between titles over and near the Gramalote Deposit; a deposit which is held in a joint venture between AngloGold Ashanti (NYSE:AU) and B2Gold (TSX:BTO, NYSE:BTG). The application in question is being processed at the Secretaria de Minas, Department of Antioquia, who has acknowledged that there is open ground covered by Zonte's application, but is attempting to deny the application. Applications for mineral titles are subject to be processed according to the Mining Code 685 of 2001 and the Company's legal counsel is of the opinion that the application has not been processed in accordance with the Mining Code. See November 19, 2015 press release on the company's website for further details and the following link which illustrates the open areas being applied for http://www.zontemetals.com/projects/colombia/.
In response to the Secretaria de Minas attempt to deny the application, the Company's legal counsel submitted a detailed counter response on November 4th, 2015 to the Secretaria de Minas. For clarification, this counter response is not a court proceeding, but rather a step in the dispute process. The Secretaria de Minas has until January 4th, 2016 to answer the response. Depending on the response and answer the Company will then proceed accordingly. In addition for further clarification, the Company has retained a legal firm that is leading the initiative as well as a separate legal advisor. The legal advisor is the former head of the Secretaria de Minas, Department of Antioquia, and hence well versed in the Mining Code 685 of 2001 which governs the titling process. The combined legal team provides the Company with a comprehensive plan to move forward on a number of fronts should it have to. Zonte will provide updates of the progress as developments materialize.
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Corporation is actively reviewing and completing field due diligence on projects in Colombia. The Company also has the Wings Point Gold Project which is a drill ready project.
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.
SOURCE Zonte Metals Inc.
Image with caption: "Figure 1. Map outlining the open areas under application (white fill area) over and near the Gramalote Deposit (CNW Group/Zonte Metals Inc.)". Image available at: http://photos.newswire.ca/images/download/20151216_C1870_PHOTO_EN_565063.jpg
For further information: Terry Christopher, CEO and President, 902-405-3520, [email protected], www.zontemetals.com