Zephyr Announces Zimbabwe Exploration Program & Private Placement
Zephyr Minerals Ltd. (TSXV: ZFR) (“Zephyr” or the “Company”) is pleased to announce it intends to conduct ground magnetic and induced polarization (IP) geophysical surveys over three gold properties, MC, MC-2 and Nyanga North; to be followed by a diamond drill program.
The MC and MC-2 properties are currently being mined for gold on a small scale by pits ten to twenty meters deep in the easily mined weathered zones. Although there is no mining currently at Nyanga North, there has been small-scale gold mining directly to the west, which is on strike with a postulated wide shear zone that trends onto Nyanga North and extends approximately 1.5km across the property. To the best of the Company’s knowledge, the three properties have never been exposed to modern exploration methods and have never been drill-tested.
Loren Komperdo, President and CEO stated, “The MC and MC-2 properties have many of the same geological characteristics as the Red Lake camp in Northern Ontario, making these two properties excellent targets for high-grade shear-hosted gold deposits. The Nyanga North prospect is on a shear zone where eluvial gold was discovered and mined but little or no follow-up exploration has ever been done. All three of these properties have high discovery potential for significant gold deposits.”
The planned exploration the program described above is contingent upon the completion of the private placement described below.
The Company announces it intends to issue, by way of a non-brokered private placement financing, up to 4,000,000 units at a price of $0.09 per unit for gross proceeds of up to $360,000 (the “Financing”). Each Unit consists of one common share and one whole common share purchase warrant (a “Warrant”) of the Company (the “Units”). Each Warrant will be exercisable to purchase one common share of the Company for $0.13 for a period of twelve months from the closing date.
The expiry date of the Warrants may be accelerated by Zephyr at any time if the volume-weighted average trading price of the common shares is greater than or equal to $0.26 for any 20 consecutive trading days. If this occurs, the Company may accelerate the expiry date of the warrants by issuing a press release announcing the reduced Warrant term whereupon the Warrants will expire on the 30th calendar day after the date of such press release.
Net proceeds from the funds raised will be used for mineral exploration programs in Zimbabwe, and for general working capital purposes. In connection with the offering, a finder’s fee may be paid consisting of a cash commission equal to 7% of the gross proceeds raised under the offering and that number of non-transferable finder’s fee warrants as is equal to 7% of the number of shares. Each finder’s fee warrant will be exercisable into one common share of the Company at $0.13 per share, for a period of twelve months from the closing date. The expiry date of the finder’s warrants are also subject to the same acceleration clause as the Unit warrants.
The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the TSX Venture Exchange. All securities to be issued pursuant to the Financing will be subject to a four-month hold period.