September 24, 2009: Zone Resources Inc. (TSX-V: ZNR) (Zone) has arranged a non-brokered private placement of up to 6,666,666 units at a price of $0.15 per unit for total proceeds of up to $1,000,000 subject to the approval of the TSX Venture Exchange.
Up to 6,666,666 units will be issued as non flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.20 per share for the first year, and $0.25 per share in the second year. The proceeds of the private placement will be used for the payment of certain debts and general working capital.
Furthermore, the Company also announces that it is entering into debt settlement agreements with creditors of the Company, pursuant to which the Company will be settling up to $950,000 in debt on terms no more favourable than the terms of the above offering. The debt settlement also remains subject to the approval of the TSX Venture Exchange.
About Zone Resources Inc.
Zone Resources Inc. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR.
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.
Cautionary note: 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.
FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:
Zone Resources Inc.
Archie Boyce, Director
Telephone: (604) 683 5445 ext 227