After bringing in gross proceeds of $1.35 million USD, Zonte Metals Inc. has closed its non-brokered private placement offering of units. The raised revenue will be used as working capital, according to the company.
In all, the Canadian gold and copper mining firm issued 13.5 million units, for $0.10 apiece, with each unit consisting of one common share and a purchase warrant valued at half a share. The warrants allow holders to purchase an additional share by paying the exercise price of $0.18 by July 31, 2018.
In addition, Zonte Metals will issue 280,250 “finder” warrants and pay out a cash finders’ fees of $68,635 USD. These finder warrants come with the same stipulations as the other warrants issued.
The company, which has an exploration application outstanding in Colombia at the open pit deposit in Gramalote, originally announced the offering in mid-January with a plan to not exceed 11 million units. A week later, it raised that limit to 13.5 million units. In all, after closing of the recent offering, Zonte Metals now has more than 40.1 million shares issued and outstanding.
In May 2016, Zonte Metals and its Colombian partner announced that they are pursuing legal action against the Secretary of Mines in Antioquia for not titling an exploration application for its Gramalote project. In December, offering an update on that dispute, the firm said that all its documents had been filed with the appropriate authorities and that “the company is waiting for an official response.”