TSX-V-listed Zinc One Resources will proceed with a rights offer to raise between C$1.22-million and C$2.44-million.
The company will offer rights to holders of its common shares, as from the close of business on July 8, on the basis of one right for each common share held.
Each right will entitle the holder to subscribe for one share of the company on the payment of a subscription price of $0.02 a share.
The rights offer will expire at 14:00 on August 7.
The rights offer will also include an additional subscription privilege under which eligible holders of the rights, who fully exercise their rights, will be entitled to subscribe, on a pro rata basis with other shareholders who participate in the oversubscription, for common shares that have not been bought under the rights offer.
The net proceeds of the offering will be used to repay corporate indebtedness, reduce trade payables, incurring $200 000 for geological, resource modelling and technical studies on the Bongará project, in Peru, and for general working capital.
Meanwhile, Zinc One also reported that it had satisfied its yearly maintenance payments on the Bongará zinc mine project and the Charlotte-Bongará zinc project.