Vancouver, British Columbia--(Newsfile Corp. - July 4, 2019) - Zinc One Resources Inc. (TSXV: Z) (OTC Pink: ZZZOF) (FSE: RH33) ("Zinc One" or the "Company") announces further to its news release dated May 27, 2019 that it will be proceeding with a rights offering to raise a minimum of CDN $1,224,439 and up to a maximum of CDN $2,448,942. Zinc One will be offering rights to holders of its common shares at the close of business on the record date of July 8 2019 on the basis of one (1) right for each each one (1) common share held (the "Rights Offering"). Each right will entitle the holder to subscribe for one share of the Company (a "Share") upon payment of a subscription price of $0.02 per Share.
The rights will not trade on the TSX Venture Exchange. The Rights Offering will expire at 2:00 p.m. (Vancouver time) on August 7, 2019 (the "Expirty Time"), after which time unexercised rights will be void and of no value. The Rights Offering will include an additional subscription privilege under which eligible holders of the rights, who fully exercise their rights, will be entitled to subscribe, on a pro rata basis with other shareholders who participate in the oversubscription, for common shares that have not been purchased under the Rights Offering.
Details of the Rights Offering will be set out in the Rights Offering notice and Rights Offering circular which will be available under Zinc One's profile at www.sedar.com. The Rights Offering notice and accompanying rights certificate will be mailed to each eligible shareholder of Zinc One as at the determined record date. Registered shareholders who wish to exercise their rights will be required to forward the completed rights certificate, together with the applicable funds, to the rights agent, Computershare Investor Services Inc., on or before the expiry time. Shareholders who own their common shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. Rights delivered to brokers, dealers or other intermediaries may not be delivered by those intermediaries to beneficial shareholders who are residents in a jurisdiction outside of Canada.
Zinc One currently has 122,443,942 common shares outstanding. After completion fo the Rights Offering, Zinc One will issue a total of 61,221,971 common shares, assuming completion of the minimum offering amount, and up to 122,433,942 common shares, assuming completion of the maximum offering amount. The net proceeds of the offering will be used to repay corporate indebtedness, reduce trade payables, incurring US $200,000 for geological, resource modelling and technical studies on the Bongar Project and general working capital