Non-brokered offering finances exploration work on mineral properties
By Devika Patel
Knoxville, Tenn., Dec. 20 - Zone Resources Inc. said it raised C$1.14 million in the second and final tranche of a C$1.8 million non-brokered private placement of units. The deal priced for C$1.8 million Oct. 11 and raised C$578,800 on Nov. 2.
The company sold 2.86 million units of one common share and one warrant at C$0.08 per unit and 3.5 million flow-through units of one flow-through common share and one half-share warrant at C$0.10 per unit in the initial tranche. It sold 8,412,500 units and 4.62 million flow-through units in the second tranche.
Each warrant is exercisable at C$0.12 in the first year and at C$0.15 in the second year. The strike prices represent 20% and 50% premiums, respectively, to C$0.10, the Oct. 7 closing share price.
The proceeds will be used for exploration on the company's mineral properties and general working capital.
Haywood Securities Inc. Jordan Capital Markets Inc. and Canaccord Genuity Corp. were paid finder's fees.
Zone is an oil and gas exploration company based in Calgary, Alta.
| Issuer: | Zone Resources Inc.
|
| Issue: | Units of one common share and one warrant, units of one flow-through common share and one half-share warrant
|
| Amount: | C$1,713,800
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.12 in first year, C$0.15 in second year
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 11
|
| Settlement date: | Nov. 2 (for C$578,800), Dec. 20 (for C$1,135,000)
|
| Stock symbol: | TSX Venture: ZNR
|
| Stock price: | C$0.10 at close Oct. 7
|
| Market capitalization: | C$3.45 million
|
|
|
| Units
|
| Amount: | C$901,800
|
| Units: | 11,272,500
|
| Price: | C$0.08
|
| Warrants: | One warrant per unit
|
|
|
| Flow-through units
|
| Amount: | C$812,000
|
| Units: | 8.12 million
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
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