Canadian mining company Zonte Metals Inc. (TSXV: ZON) has secured $1.24 million USD in financing through the private placement of shares, warrants, and flow-through shares.
Zonte Metals said in a statement that it plans to use the funds for “working capital purposes” and to finance exploration at the Cross Hills Iron Oxide Copper Gold Property in the Canadian provinces of Newfoundland and Labrador. “The exploration program will consist of drilling the first target at Dunns Mountain and additional high resolution ground geophysics over other high-priority targets,” added the firm.
The Halifax-based company, which holds a disputed interest in the Gramalote gold deposit in Colombia, placed 3,624,000 units, each of which consist of one common share and half of a share purchase warrant, at a price of $0.25 USD per unit.
Each full warrant will give the holder the right to acquire one additional share for $0.40 USD per share for the following 18 months. (The company retains the right to shorten that period of time if its share price hits and remains above $0.70 USD per share for any 20-trading-day period during the next year and a half.)
The rest of the placement includes 1,126,666 flow-through shares at a price of $0.30 USD per share to reach the full total financing of an estimated $1.24 million USD.
The move remains subject to TSX Venture Exchange approval.