Zazu Metals Closes Second and Final Tranche of Non-Brokered Private Placement

Zazu Metals (TSX:ZAZ) has completed the second and final tranche of its previously announced non-brokered private placement financing. The second tranche consisted of US$692,800 consisting of 3,464,000 common shares of the Company at US$0.20 (or CDN$0.25) per Common Share.

As quoted in the press release:

Zebra Holdings and Investments S.a.r.l. (“Zebra”), a company controlled by a trust settled by the late Adolf H. Lundin, a greater than 10% holder of voting securities of the Company, purchased 2,164,000 Common Shares pursuant to the Offering. Prior to the completion of the Offering, Zebra owned or controlled, directly or indirectly, 8,860,280 Common Shares, and together with the Common Shares purchased pursuant to the Offering, now owns approximately 19.9% of the total Common Shares issued and outstanding after the completion of the Offering.

Gil Atzmon, Chairman and Chief Executive Officer of the Company, purchased 1,000,000 Common Shares pursuant to the Offering. Prior to the completion of the Offering, Mr. Atzmon owned or controlled, directly or indirectly, 5,789,500 Common Shares, and together with the Common Shares purchased pursuant to the Offering, now owns approximately 12.3% of the total Common Shares issued and outstanding after the completion of the Offering.

The participation of Zebra and Mr. Atzmon to the financing made the Offering a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101″).

The Offering was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities distributed pursuant to the Offering nor the consideration received for those securities, insofar as the Offering involved interested parties, exceeded $2,500,000.

The Common Shares issued pursuant to the Offering are subject to a statutory four month and one day hold period.

The Company intends to use the proceeds from the Offering for property development expenditures and general working capital purposes. Completion of the private placement is subject to regulatory approval.

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