Business
Zephyr Closes First Tranche of Previously Announced Private Placement
Halifax, Nova Scotia--(Newsfile Corp. - July 31, 2023) - Zephyr Minerals Ltd. (TSXV: ZFR) (" Ze...
About this update from Zephyr Minerals Ltd.
[{"type":"text","content":"Zephyr Closes First Tranche of Previously Announced Private PlacementHalifax, Nova Scotia--(Newsfile Corp. - July 31, 2023) - Zephyr Minerals Ltd. (TSXV: ZFR) (\"Zephyr\" or the \"Company\") is pleased to announce that it has closed the first tranche (the \"First Tranche\") of its previously announced non-brokered private placement (the \"Private Placement\") through the issuance of 3,210,000 (the \"Units\") at a price of $0.09 per Unit for gross proceeds of $288,900. Each Unit consists of one (1) common share (each, a \"Share\") and one (1) transferable Share purchase warrant (each, a \"Warrant\"). Each Warrant entitles the holder thereof to purchase one (1) additional Share of the Company at a price of $0.13 per Share for a period of twelve (12) months. The expiry date of the Warrants may be accelerated by Zephyr at any time if the volume-weighted average trading price of the common shares is greater than or equal to $0.26 for any twenty (20) consecutive trading days. If this occurs, the Company may accelerate the expiry date of the warrants by issuing a news release announcing the reduced Warrant term whereupon the Warrants will expire on the 30th calendar day after the date of such news release.Net proceeds from the Private Placement will be used for mineral exploration programs in Zimbabwe (see news release July 26, 2023) and for general corporate purposes.The president and CEO of the Company subscribed for an aggregate of 200,000 Units for gross proceeds of $18,000 in the Private Placement. Such participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Company is relying on the exemptions from valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by insiders does not exceed twenty-five percent (25%) of the market capitalization of the Company as determined in accordance with MI 61-101.Under the First Tranche closing, the Company paid a cash finder's fee $9,198 and issued 102,200 finder's warrants to PI Financial Corp; and a cash finder's fee of $6,300 and issued 70,000 finder's warrants to Leede Jones Gable Inc. Each finder's warrant entitles the holder to acquire one common share of the Company at $0.13 p...