Today we go with another one in our occasional series that uses the world famous and patented Ottotrans™ to take the gobbledegook English oft encountered in news releases out of junior mining company and turn it into something that reasonable people can grasp. Today's example comes from Zincore Metals Inc. (ZNC.to) and looks at the company NR was first seen after the bell last night.
This is what they wrote:
JUN 8, 2011 - 16:20 ETVANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Zincore Metals Inc. (TSX:ZNC)(BVLAC:ZNC) ("Zincore" or the "Company") reports that, due to adverse market conditions following the recent Presidential election in Peru, it is revising the terms of the brokered private placement of units originally announced on May 24, 2011. Under the revised terms, the Company will seek to raise gross proceeds of up to $6.4 million on a best efforts basis. Units will be priced at $0.28 per unit and will be comprised of one common share and one-half common share purchase warrant ("Warrants"). The Warrants will be non-transferable and each whole Warrant will entitle the holder to purchase one common share at a price of $0.40 for up to 36 months. Dundee Securities Ltd. is acting as the sole agent on this financing.
Zincore CEO and President, Jorge Benavides, commented "The result of the recent Presidential election in Peru has created significant short term volatility in the market. For this reason, it has become necessary for us to amend the terms of our proposed financing. The fact that we are still raising these funds to carry out our programs in Peru is a testament to our belief that Peru will remain a good place to do business."
The net proceeds of the offering will be used to fund the development of Zincore's mineral properties in Peru and for general corporate purposes.
The common shares issued with respect to this offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
The closing of this offering is expected to occur on or about June 15, 2011 and is subject to receipt of all necessary regulatory approvals including that of the Toronto Stock Exchange.
Any participation by insiders of the Company in the Offering, which participation will be subject to the approval of the independent directors of the Company, will be on the same terms as the arm's length investors and at or below their current pro-rata percentage ownership.
This press release is not an offer of securities for sale in the United States. The common shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.
And this is what it means:
Zincore CEO and President, Jorge Benavides, commented "The result of the recent Presidential election in Peru has tanked our stock to kingdom come. For this reason, it has become necessary for us to cut the price of of our proposed financing otherwise nobody's gonna go near it, we'd be left with diddlysquat in the treasury and wouldn't be able to carry out our programs. The fact that we are still desperate to raise these funds to carry out our programs in Peru overrides the wishes of current shareholders so we've decided to dilute their asses even more than even they expected."
DYODD.