Business
Zonte Metals Announces Non-Brokered Private Placement and Provides an Update on The Gramalote Target Application
BEDFORD, NS, Dec 16, 2015 /CNW/ - Zonte Metals Announces a Private Placement and Provides Update On The Gramalote Target Application. Zonte announces that it pl
About this update from Zonte Metals Inc.
[{"type":"text","content":"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 th...