VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2012) - Zone Resources Inc. (TSX VENTURE:ZNR)(FRANKFURT:7ZR) reports that it held its Annual General on Friday June 29th, 2012 and all items listed on the proxy were approved.
The Company further reports that it received TSX Venture Exchange approval for a loan, in the principal amount of $300,000 (the "Loan"), previously announced June 12th, 2012. The Loan is with arm's length parties pursuant to promissory notes (the "Notes") to be issued to the Lender as security for the Loan.
The Loan will bear interest at 1% per month on the principal amount and will be used for working capital of the Company until the closing of a non flow through financing can be completed to repay the Loan. If the Loan is not repaid by December 1st, 2012, the interest rate will increase to 2% per month on the principal amount.
In consideration of the Loan, the Company will issue to the lenders 1,200,000 common shares of the Company as bonus shares (the "Bonus Shares"). The Loan is also subject to a 7.5% finder's fee on $200,000 of the $300,000 Loan.
The Company also confirms that it will not be proceeding with the private placement previously announced March 21st, 2012.
About Zone Resources Inc.
Zone Resources Inc. is a Canadian Iron ore exploration and development company with 4 major projects situated in the Labrador Trough of Quebec, Canada. The properties are near Adriana Resources' Lac Otelnuk Project and New Millennium's Kemag and Labmag projects. Recent 43-101 compliant drilling, completed at the end of 2011, on the Girard property intersected 35.77% Fe over 243.00 metres in drill hole ZR11-08 and 35.64% Fe over 137.00 metres in drill hole ZR11-09. ZR11-08 and ZR11-09 were the only two drill holes completed by Zone at the Girard property during the 2011 program.
Additional 2011 drilling on the Moore-Ross property, 70 kilometres to the northwest of the recent drilling at the Girard property, intersected an average of 32.54% Fe over 167.10 metres in drill hole ZR11-07. Historical drilling on the Moore-Ross property is highlighted by a significant hole grading 42.9% iron over 197 feet, including over 37 other drill holes with iron grades ranging from 17.25% to 44.8% (the primary iron mineral is hematite).
Technical information in this news release has been reviewed by Peter Bambic, P.Geo., a qualified person as defined in National Instrument 43-101. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR and on the Frankurt Exchange under the symbol 7ZR.
This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.