JZR Gold increases financing, closes first tranche

Jul 22, 2024

2024-07-22 12:40 ET – News Release

Mr. Robert Klenk reports

JZR GOLD CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT OFFERING OF CONVERTIBLE DEBENTURES AND INCREASES OFFERING UP TO $1,700,000

JZR Gold Inc. has closed the first tranche of its previously announced non-brokered private placement offering of unsecured convertible debentures. Pursuant to the offering, which was announced on June 21, 2024, the company has issued debentures in the aggregate principal amount of $1.5-million. Also, due to investor interest, the offering has been increased to $1.7-million.

The debentures will mature on the date that is one year from the date of issuance and shall bear simple interest at a rate of 10 per cent per year, payable on the maturity date. The principal sum of the debentures, or any portion thereof, and any interest may be converted into units of the company at a conversion price of 20 cents per unit. Each unit shall comprise one common share and one share purchase warrant. Each warrant shall entitle the holder to acquire one additional common share in the capital of the company at a price of 25 cents for a period of 24 months from the date that the warrants are issued.

No finders’ fees were paid in connection with the closing of the first tranche of the offering.

All debentures issued pursuant to the offering, including any securities into which they may be exercised or converted, are subject to a statutory hold period of four months and one day from the date of issuance thereof. The offering is subject to final acceptance by the TSX Venture Exchange.

On July 14, 2024, the company entered into a non-binding letter of intent with an arm’s-length party in connection with a potential transaction, which LOI was terminated on July 18, 2024.

The company intends to use the net proceeds of the offering: (i) 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; (ii) to pay certain liabilities owed to arm’s-length parties; and (iii) for general working capital purposes. 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 (EIRELI), 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 profits generated from the Vila Nova project.

We seek Safe Harbor.

https://jzrgold.com/