HALIFAX, July 9, 2014 /CNW/ - Zonte Metals Inc (TSXV: ZON) ("Zonte" or the "Company") is pleased to announce that it has closed the initial tranche of the Private Placement announced on May 8, 2014 (the "Offering") and has also reached an amended agreement to acquire a 100% interest in the Company's Wings Point Gold Project.
The Company will issue 3,172,538 units (the "Units") at a price of $0.065 per Unit for total gross proceeds of $206,215 upon closing of the initial tranche of the Offering. Each Unit is comprised of one common share and one half of one common share purchase warrant, with each whole warrant (the "Warrants") entitling the holder thereof to acquire one common share of the Company at a price of $0.10 at any time prior to July 9, 2016. The Company will issue 24,320 Broker Warrants and pay cash finders' fees aggregating $1,581 on the closing of the initial tranche of the Offering. Each Broker Warrant entitles the holder to purchase one common share of the Corporation at an exercise price of $0.10 per share at any time prior to January 9, 2016. Several additional parties have expressed interest in participating in the Private Placement and the Company may consider closing a second tranche of up to 1,827,462 Units for additional gross proceeds of up to $118,785 subject to timing and demand.
The Company intends to use the proceeds of the Offering for mineral exploration and working capital purposes.
The Company also announces that it has re-negotiated the terms of the Wings Point Option Agreement and subject to regulatory and exchange approval will acquire a 100% interest in the Wings Point Gold Project through the issuance to the vendors of 1,000,000 common shares of the Company. The acquisition of a 100% interest in the Project provides the Company with greater flexibility on the timing of additional exploration going forward.
The securities issued pursuant to the Offering (including the Units and Broker Warrants) and Wings Point Gold Project acquisition are subject to a four-month and one day statutory hold period that will expire on November 10, 2014. Following the closing of the initial tranche of the Offering and the acquisition of its 100% interest in the Wings Point Gold Project, Zonte will have 25,120,779 shares issued and outstanding.
Zonte Metals Inc. is a junior explorer focused on gold and copper. Zonte's Wings Point Project, located on the island portion of Newfoundland and Labrador, has been the Company's primary exploration focus to date and the Company has identified several drill-ready targets. In Colombia the Company, in collaboration with strategic local partners, has also applied for three exploration licenses covering areas believed to be highly prospective, and is continuing with negotiations and due diligence on several other projects and opportunities in Colombia.
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.
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