Canadian based gold exploration and development concern, Zephyr Minerals Limited is set to commence exploration over three gold properties, MC, MC-2 and Nyanga North which will be followed by a diamond drill program.
The miner's data shows that MC and MC-2 properties are currently being mined for gold on a small scale by pits ten to twenty meters deep in the easily mined weathered zones. There has not been any serious mining in Nyanga North with only small-scale gold mining directly to the West.
The three properties have never been exposed to modern exploration methods and have never been drill tested.
Zephyr Minerals CEO, Loren Komperdo said indications hint at lucrative deposits on the three targeted projects.
"'The MC and MC-2 properties have many of the same geological characteristics as the Red Lake camp in Northern Ontario, making these two properties excellent targets for high-grade shear hosted gold deposits.
"The Nyanga North prospect is in a shear zone where eluvial gold was discovered and mined but little or no follow-up exploration has ever been done. All three of these properties have high discovery potential for significant gold deposits," he said.
Zephyr also announced the sale of stock shares to pre-selected investors and institutions of up to 4,000,000 units at a price of $0.09 per unit for gross proceeds of up to US$360,000 as an alternative to an initial public offering (IPO) in a bid to raise capital for expansion.
Under the arrangement, each Warrant will be exercisable to purchase one common share of the Company for $0.13 for a period of twelve months from the closing date.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The expiry date of the Warrants may be accelerated by Zephyr at any time if the volume-weighted average trading price of the common shares is greater than or equal to $0.26 for any 20 consecutive trading days.
If this occurs, the company may accelerate the expiry date of the warrants by issuing a press release announcing the reduced Warrant term whereupon the Warrants will expire on the 30th calendar day after the date of such press release.
"Net proceeds from the funds raised will be used for mineral exploration programs in Zimbabwe, and for general working capital purposes.
"In connection with the offering, a finder's fee may be paid consisting of a cash commission equal to 7% of the gross proceeds raised under the offering and that number of non-transferable finder's fee warrants as is equal to 7% of the number of shares," said Zephyr.
Zephyr Minerals Ltd. is conducting ongoing evaluations of gold properties for potential acquisition and/or joint ventures throughout Zimbabwe.
To this extent, the Company has signed multiple property joint venture agreements and has applied for two Exclusive Prospecting Orders covering 124,000 hectares.
The Company is also actively reviewing lithium opportunities generated through in-house research and property submittals by third parties.
