Zinc One Resources Inc (CVE:Z) (OTCMKTS:ZZZOF) updated shareholders on Thursday on the terms of its rights offering to raise between C$1.2 million and C$2.5 million to advance the Bongará zinc project located in Peru.
The Vancouver-based company recently announced that it has entered into a joint venture arrangement with InCoR Holdings, a venture capital investor in the natural resources industry, to move forward with Bongará.
The company told investors that it will be proceeding with the offering by granting rights to shareholder at the close of business July 8 and expire by 2pm PST on August 7.
Each right offering will entitle shareholders to subscribe for one share at a subscription price of C$0.02.
The junior explorer currently has around 122 million shares outstanding. After completion of the offering, the company will issue just over 61 million shares and up to 122 million shares if the maximum offering amount is reached.
Net proceeds will be used for general working capital purposes and geological and technical studies on Bongará.
Zinc One also informed shareholders that it had satisfied its annual claim maintenance payments on the project thanks to a US$275,000 loan from InCoR.
A former producer from 2007 to 2008, output from the Bongará mine included nearly 20% zinc grades and recoveries over 90% from surface and near-surface zinc-oxide mineralization.
Shares of Zinc One traded Thursday in Toronto at C$0.02 and rose 31.5% on OTC markets at US$0.02.
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