Zodiac Gold closes C$5.6M private placement for Todi drill program

Zodiac Gold Inc. (TSXV: ZAU) (OTCQB: ZAUIF) (FSE: K19) closed a non-brokered private placement of 16,000,000 units at C$0.35 per unit, raising gross proceeds of C$5,600,000, according to a company statement.

The offering closed on an oversubscribed basis and remains subject to final approval of the TSX Venture Exchange. Net proceeds will be used to expand the drill program at the Todi Gold Project in Liberia, advance exploration across the company's licenses, and for working capital. All issued securities are subject to a four-month-and-one-day hold period.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant allows the holder to acquire one common share at C$0.54 for 24 months from issuance. The warrants include an acceleration feature triggered if the 30-day volume-weighted average share price exceeds C$0.65 after four months from issuance.

Finder's fees were paid to Haywood Securities Inc., Canaccord Genuity Corp., and Richardson Wealth Ltd. Canaccord received C$77,665 and 221,900 compensation warrants; Haywood received C$61,936 and 176,960 compensation warrants; Richardson Wealth received C$4,001.20 in cash only.

An insider participated in the offering, subscribing for 55,399 units for C$19,389.65. The company relied on exemptions from minority shareholder approval and formal valuation requirements under Multilateral Instrument 61-101, as the value of the insider's participation did not exceed 25% of the company's market capitalization.

CEO David Kol stated that following the financing, Zodiac Gold holds approximately C$9 million in its treasury, which the company intends to use to accelerate exploration at the Todi Gold Project.

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