Zenyatta Ventures Ltd. Announces Completion of Rights Offering for Gross Proceeds of $2,945,000

Don Hains, P. Geo. stated,

 Thunder Bay, ON – MINING – Zenyatta Ventures Ltd. (“Zenyatta” or “Company”) (TSXV: ZEN) announces that it has completed its previously announced rights offering, which expired on June 10, 2016. The rights offering was fully subscribed, and raised approximately $2,945,000 in gross proceeds.

The Company issued an aggregate of 3,930,268 common shares at $0.75 per share (1,410,484 common shares pursuant to the basic subscription privilege, 1,040,091 common shares pursuant to the additional subscription privilege and 1,479,693 common shares pursuant to the stand-by agreement).

After completion of the rights offering, there were 62,884,284 common shares outstanding. In consideration for providing the stand-by commitment, the stand-by purchasers were granted 982,567 common share purchase warrants which amount is equal to 25% of the 3,930,268 stand-by shares they agreed to purchase under the stand-by commitment. Each whole stand-by warrant entitles the holder to acquire one common share for $0.83 until June 11, 2018.

Zenyatta intends to use the net proceeds of the Rights Offering to further the positive market and business development program initiated over a year ago for validation of Albany graphite in high purity graphite applications. This will include production of additional high purity Albany graphite samples for testing by end-users, academic labs and third party testing facilities in Europe, North America and Asia under confidentiality agreements. Production of samples will also provide added insights into the scale up of the purification process with optimization analysis and potentially associated cost reductions. Many of these organizations were provided a small amount of purified graphite material. These tested samples provided a good initial assessment and guidance for the potential of Albany graphite for various applications that included batteries, fuel cells, powder metallurgy and graphene. The positive feedback concluded that additional samples for scaled up testing is an important step for further development of Zenyatta’s Albany graphite material as a substitute for existing synthetic graphite in use today.

Previous articleThe Beauty of Stopping to Smell the Roses
Next articleThunder Bay Offers Condolences to Orlando
NetNewsledger.com or NNL offers news, information, opinions and positive ideas for Thunder Bay, Ontario, Northwestern Ontario and the world. NNL covers a large region of Ontario, but we are also widely read around the country and the world. To reach us by email: newsroom@netnewsledger.com. Reach the Newsroom: (807) 355-1862