Zonte Metals Inc. (TSXV: ZON) has announced the closing of a private placement offering including the second tranche which closed on January 20, 2016. Zonte Metals Inc. is a junior explorer focused on gold and copper that is actively reviewing and completing field due diligence on projects in Colombia, and also has the drill-ready Wings Point Gold Project, located in Newfoundland.
The company will issue a total of 1,503,647 units at a price of $0.085 Canadian Dollars per unit for total gross proceeds of $127,810, including an additional 230,000 additional units for gross proceeds of $19,550 issued upon closing of the second tranche of the offering. Each unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share of the company at a price of $0.16 at any time prior to December 30, 2017. The company will issue a total of 40,240 broker warrants and pay cash finders’ fees aggregating $3,420. Each broker warrant entitles the holder to purchase one common share of the corporation at an exercise price of $0.16 per share at any time prior to June 30, 2017.
According to a statement by CEO Terry Christopher, the company intends to use the proceeds of the offering for working capital purposes. The securities issued pursuant to the second tranche offering, including the units and broker warrants, are subject to a four-month and one day statutory hold period that will expire on May 21, 2016. Following the closing of the offering, Zonte will have 26,624,426 shares issued and outstanding.