Zenith Minerals (ASX: ZNC) has received firm commitments in a placement to raise $5.1 million, before costs, to accelerate an active exploration program with a focus on its core gold projects.
Zenith has received firm commitments to raise approximately $5 million from institutional and sophisticated investors.
Placement to accelerate an active exploration program with a focus on Zenith’s core gold projects.
Significant news flow expected as drilling progresses at 100% owned Red Mountain Gold Project, which recently returned high-grade drill results from the maiden RC drilling program.
A second drill program is planned to commence in early July at Zenith’s 100% owned Split Rocks Gold Project, testing a series of previously identified high-order targets.
The Placement received significant support from new and existing institutional and sophisticated investors, and new shares will be issued under the Company’s available ASX Listing Rule 7.1 and 7.1A placement capacity.
A total of 51 million new fully paid ordinary shares in the Company (“New Shares”) will be issued under the Placement, which will rank pari passu with existing fully paid ordinary shares in the Company. The Placement issue price of $0.10 per New Share represents a 13.0% discount to the last traded price (on 2 July 2020) and a 13.8% discount to the 15-day VWAP. Settlement of the Placement will take place on or about Friday 10 July 2020.
Commenting on the Placement, Zenith Managing Director, Mick Clifford said, “We are very pleased by the significant support for the Placement, reflecting strong investor interest in the Company, its gold exploration projects, and the optionality that our wide exploration portfolio provides.
“We wish to take this opportunity to welcome new investors in Zenith and thank our existing shareholders for their continued support.”