ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF)
ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF) has announced the securing TSX Venture Exchange approval for the acquisition of all of Forrester Metals Inc outstanding common shares. The company has also announced closing its previously announced private placement of $10,000,000. The company’s transaction with Forrester is based on a favorable trends in the zinc markets plus production history of zinc assets in the Forrester portfolio. Zinc One CEO Jim Walchuck said the acquisition and the completion of the private placement is a major milestone for ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF). He added that the significant steps are being taken by the company to develop the Bongará Mine Project.
The transaction was closed in escrow awaiting submission of Articles of Arrangement under the Business Corporations Act (Ontario). The transaction is being effected in the form of a court approved plan of arrangement. Under the provision of the agreement, one common share of Zinc One will be received for every 5.5 of Forrester common shares. Consequently Zinc One will issue a total of 23,627,158 Zinc One Shares to Forrester shareholders. All Forrester’s outstanding warrants and options will remain outstanding and later adjusted in line with the transaction. In addition, some Forrestor officers and directors will give up a total of 4,101,888 Forrester Shares as severance payments. These shares will be converted to 745,797 Zinc One Shares.
ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF) will retain James Walchuck as the CEO and President and Natasha Tsai as Chief Financial Officer. The company’s board will consist of Bill Williams, Gunther Roehlig, W. Barry Girling, Greg Crowe, and James Walchuck. Dr. Williams will represent Forrester on the Zinc One board. He is a former CEO and President at Orvana Minerals Corp and highly experienced in the South American market. Since leaving Orvana Minerals Corp he has been consultant to the mining industry.
As part of the transaction, ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF) has closed a private placement of 16,666,667 units at $0.60 per unit. The company generated $10,000,000 in gross proceeds from the placement. Each unit is made up of one Zinc One Share plus one-half of one share purchase warrant. Each holder of one whole warrant is entitled to one more Zinc One share at a price of $0.90 per share.
ZINC ONE RES INC COM NPV (OTCMKTS:ZZZOF) ended in Tuesday trading session having shed 4.24% in market value to end the day at $0.480 a share.
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About the author: Artemis grew up in Boston, MA. After college she talked her way into a job with a leading mutual fund family working as an equity analyst. In this role, emerging companies became her specialty. Artemis now devotes her time to raising her twins and consulting to mutual funds.