Trading Symbol: TSX-V: ZFR
OTC-ZPHYF
Shares Outstanding: 67,086,985
HALIFAX,
NS, Nov. 28, 2022 /CNW/ - Zephyr Minerals
Ltd. (TSXV: ZFR) ("Zephyr" or the "Company") is
pleased to announce it intends to issue, by way of a non-brokered
private placement financing, up to 4,000,000 units at a price of
$0.08 per unit for gross proceeds of
up to $320,000 (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 $0.12 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 $0.24 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 to evaluate and
pursue mineral opportunities 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
nontransferable 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 $0.12 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.
Update
The Company is waiting for two Exclusive Prospecting Orders
("EPO") applied for in 2021 in Zimbabwe to be granted. The EPO applications
are in the final stage of processing which, upon completion will be
submitted to the President of Zimbabwe for approval and signature. Timing
remains uncertain, however the Company is hopeful that they will be
granted by year end. The two EPO applications combined cover
approximately 124,000 hectares of mineral prospective areas.
Concurrently, the Company is continuing to evaluate mineral
properties in Zimbabwe for
potential acquisition, option or joint venture. A number of high
potential mineral properties have been identified which are in
various stages of negotiation. Preference is given to gold
properties with the potential for high tonnage open pit
resources.
In the second quarter, the Company entered into an option
agreement to acquire a 75% interest in the 40 hectare Chikonga Gold
Mine Property from a privately owned arm's length Zimbabwe company. See Company news release of
May 9, 2022 for additional details.
The agreement is subject to satisfactory due diligence which is
anticipated to be concluded early in Q1- 2023.
Following a review of relevant technical data, the Company
elected to abandon low priority areas of its Colorado holdings, thereby reducing its total
number of unpatented claims from 140 to 78. In addition, on
November 7, 2022, the Company entered
into a sale agreement with an arm's length third party with respect
to the 10 acre patented claim at Green Mountain. Based on the
current Dawson mine permitting
exercise it has become evident that the sulphidic mineralization at
Green Mountain would be problematic to permit for treatment at
Dawson where the mineralization is
environmentally benign in comparison. As such, the Company's focus
in Colorado will be the high
priority areas which are being retained, being the core holdings at
the Dawson and El Plomo sections
of the property portfolio. The property will henceforth be referred
to as the Dawson-El Plomo
property.
About Zephyr Minerals
Ltd.
Zephyr Minerals Ltd. is active in mineral exploration in
Colorado, USA and Zimbabwe. In Colorado Zephyr has been focused
on mine permitting activities at its 100% owned Dawson gold property, which is presently in
hiatus pending the collection and submission of additional water
well data and satisfying certain other environmental related
questions. The additional required water wells are still in the
planning stage and will be drilled once available funds are in
hand. Upon collection of the additional data the Company plans to
reapply for a mining permit at Dawson.
In Zimbabwe the Company is
working to build a mineral property portfolio and to this end has
applied for two Exclusive Prospecting Orders covering 124,000
hectares. Zephyr is actively assessing additional mineral
opportunities in Zimbabwe on an
ongoing basis. Zimbabwe boasts
favourable foreign ownership rules for mineral properties as well
as prospective, underexplored Archean greenstone belts.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The forward-looking statements contained in this
document are based on certain key expectations and assumptions made
by the Company. The forward-looking statements contained in this
document are made as of the date hereof and the Company undertakes
no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
SOURCE Zephyr Minerals Ltd.