Zodiac Gold Inc, a West-African gold exploration company, announces that it has terminated the exclusivity agreement previously entered into with Mable and Fable Limited, due to MFL’s failure to satisfy their funding obligations under the agreement.
By terminating the exclusivity agreement, the Company is now free to pursue multiple strategic opportunities that have emerged since the announcement of its recent iron ore discovery. Following that announcement, Zodiac Gold has received substantial interest from multiple parties regarding these high-potential assets.
The Company intends to evaluate these opportunities with a view towards identifying how to best leverage its iron ore assets in one or more transactions that will maximize shareholder value. In parallel, Zodiac Gold intends to continue to build on the exploration success of its recently completed Alasala and Arthington drilling programs at its Todi Project.
David Kol, President & CEO of Zodiac Gold, commented: “The decision to terminate the agreement was not taken lightly, but it is imperative that we remain agile and open to evaluating all potential opportunities.
The newly discovered iron ore potential of our properties combined with the very encouraging results of our recent drilling campaigns at multiple gold deposit targets provide Zodiac Gold with multiple avenues to build significant value for our shareholders.
The level of interest in our assets underscores their quality and strategic importance, and we are committed to ensuring that the next steps we take are aligned with long-term growth.”
Given the termination of the MFL exclusivity agreement, the Company will not have access to the funding that MFL had originally agreed to provide in exchange for the exclusivity arrangements. As a result, in addition to pursuing the various inquiries it has received from third parties regarding potential strategic transactions, Zodiac Gold is pleased to announce that it intends to complete an offering of units of the Company, on a non-brokered private placement basis, for aggregate proceeds of up to C$500,000. The Offering is being led by existing shareholders.
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