Zodiac Gold seeks up to C$4.025 million in private placement

Zodiac Gold Inc. (TSXV: ZAU) announced a non-brokered private placement offering for up to C$4.025 million, according to a company statement. The West African gold exploration company plans to issue up to 11.5 million units at C$0.35 per unit.

Each unit consists of one common share and one-half warrant. Each whole warrant allows the holder to purchase one common share at C$0.54 for 24 months from issuance. The warrants include an accelerated expiry provision if the company's share price exceeds C$0.65 for 30 consecutive trading days after a four-month period following warrant issuance.

The offering is being led by insiders and existing shareholders. Zodiac Gold stated the net proceeds will fund expansion of its drill program at the Todi Gold project, advance exploration across its licenses, and provide working capital. The company expects to close the offering within approximately 45 days, potentially in multiple tranches.

Securities issued in the offering will be subject to a four-month hold period. The transaction requires approval from the TSX Venture Exchange.

Participation by company directors and officers will constitute a related party transaction under securities regulations. The company anticipates using exemptions from minority shareholder approval and formal valuation requirements, as the transaction value is expected to remain below 25% of the company's market capitalization.

Zodiac Gold operates the Todi Gold Project in Liberia, covering 2,316 square kilometers. The company also trades on OTCQB markets under ticker ZAUIF and on the Frankfurt Stock Exchange as K19.

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