Business
Zephyr Closes Second Tranche of Previously Announced Private Placement
Halifax, Nova Scotia--(Newsfile Corp. - August 15, 2023) - Zephyr Minerals Ltd. (TSXV: ZFR) (" ...
About this update from Zephyr Minerals Ltd.
[{"type":"text","content":"Zephyr Closes Second Tranche of Previously Announced Private PlacementHalifax, Nova Scotia--(Newsfile Corp. - August 15, 2023) - Zephyr Minerals Ltd. (TSXV: ZFR) (\"Zephyr\" or the \"Company\") announces that it has closed a second tranche (the \"Second Tranche\") of its previously announced non-brokered private placement (the \"Private Placement\") through the issuance of 494,000 (the \"Units\") at a price of $0.09 per Unit. 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 executive chairman and a director of the Company subscribed for an aggregate of 194,000 Units for gross proceeds of $17,460 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 Second Tranche closing, the Company paid a cash finder's fee $1,575 and issued 17,500 finder's warrants to PI Financial Corp. Each finder's warrant entitles the holder to acquire one common share of the Company at $0.13 per share at any time on or before August 15, 2024. The expiry date of the finder's warrants are also subject to the same ac...