/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA/
Trading Symbol: TSX-V: ZFR
Shares Outstanding: 19,132,295
HALIFAX, Feb. 28, 2013 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV: ZFR) is pleased to announce that it has closed the previously
announced private placement to raise $452,009 through the issuance of
2,511,166 units at a price of $0.18 per unit. Each unit consists of one
common share and one-half of one common share purchase warrant. Each
whole warrant entitles the holder to acquire one common share at an
exercise price of $0.25 per common share at any time on or before the
12-month anniversary of the closing of the offering.
Zephyr plans to commence a diamond drill program on its 100% owned
Dawson Gold Property located in Colorado, USA by mid-March. The drill
program on the Windy Gulch segment of the Dawson Gold Property is
expected to take two to four weeks to complete and will include up to
15 holes, totaling approximately 500 metres. The Windy Gulch segment
was the target of a limited number diamond drill holes by previous
explorers between 1982 and 1991. This previous drilling outlined a high
grade gold resource that was at and near surface. The current drill
program is designed to expand and better define this near surface gold
resource.
A National Instrument (NI) 43-101 resource estimate incorporating the
Windy Gulch segment, Windy Point segment and the larger Dawson segment
is expected to be complete by mid-2013. The Dawson Segment is host to a
historical resource estimated (Uranerz USA Ltd., 1991), at 239,000
tonnes grading 15.1 g/t gold at a 5.1 g/t cut-off (assays uncut). This
resource estimate is historical and a qualified person has not done
sufficient work to classify the historical estimate as current mineral
resources, and the issuer is not treating the historical estimate as
current mineral resources.
David Felderhof, executive vice president of Zephyr Minerals, stated:
"The Dawson property has been dormant for over 20 years, thus last
explored when the gold price was approximately $400 per ounce. The
results of Zephyr's recent assessment and evaluation of the extensive
database supported by 142 diamond totaling approximately 27,500 metres
drilled circa 1982-1991, point to Dawson as an attractive gold property
hosting a historical resource with very attractive grades and expansion
potential. Furthermore, and most importantly, the Dawson Property
located in Colorado, USA represents an excellent opportunity for rapid
development in a politically stable jurisdiction."
Zephyr has ended its option agreement with SLAM Exploration on the
Keezhik gold claims in northern Ontario. Although a successful 2012
prospecting program resulted in a new gold showing, the Company intends
to focus its efforts on developing the advanced stage Dawson Gold
Property as well as identifying and acquiring additional advanced gold
projects with comparable attributes to Dawson.
All securities issued in connection with the private placement are
subject to a four-month hold period that expires on June 27, 2013. Net
proceeds from the funds raised will be used to conduct exploration and
development work on the Dawson Gold Property, and for general working
capital purposes. The private placement remains subject to final
approval of the TSX Venture Exchange.
The Company paid cash finder's fees of $23,009 and issued 127,827
finder's fee warrants to finders acting on behalf of the Company in
connection with the private placement. Each finder's fee warrant will
be exercisable into one common share of the Company at $0.25 per share,
for a period of 12 months from the closing date.
Peter Webster, PGeo, who is a qualified person as defined under NI
43-101, has reviewed the technical contents of this news release.
CAUTIONARY STATEMENT:
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. This press
release contains forward-looking statements. More particularly, this
press release contains statements concerning the use of funds from the
private placement.
The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by the Company,
including, with respect to the use of funds from the private placement,
expectations and assumptions concerning timing of receipt of required
regulatory approvals and third party consents and the satisfaction of
other conditions to the completion of the exploration work on the
Dawson Gold Property.
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.
