JZR Gold closes $525,000 first tranche of financing

Apr 27, 2023

2023-04-27 10:16 ET – News Release

Mr. Robert Klenk reports

JZR GOLD CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OFFERING OF UNITS

Further to its news release dated April 21, 2023, JZR Gold Inc. has closed the first tranche of its previously announced non-brokered private placement offering of common shares by issuing 875,000 units at a price of 60 cents per unit for gross proceeds of $525,000. Each unit comprises one common share and one share purchase warrant. Each warrant shall entitle the holder to acquire one additional common share at a price of 90 cents for a period of 18 months after the date of issuance. The balance of the offering is expected to close on or before May 30, 2023. The offering is subject to the approval of the TSX Venture Exchange. The securities will be subject to a hold period of four months and one day from the date of issuance.

Insiders of the company subscribed for a total of 500,000 units under the offering, which is a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. The company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any related party participation in the offering, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25 per cent of the company’s market capitalization.

The company intends to use the net proceeds of the offering to finance operations of the fully constructed, 800-tonne-per-day gravimetric mill, as well as future exploration work on the Vila Nova gold project, located in Amapa state, Brazil. The company may finance operations on the Vila Nova gold project by advancing funds, by way of one or more loans, to Eco Mining Oil & Gaz Drilling and Exploration, as operator of the Vila Nova project. Net proceeds will also be used for general working capital purposes. The company possesses a 50-per-cent net profit interest from all net profit generated from the Vila Nova project.

We seek Safe Harbor.

https://jzrgold.com/