Sydney, Nov 5, 2008 AEST (ABN Newswire) - The Directors of Zamia Gold Mines Limited (ASX:ZGM) are pleased to announce strong support from the Company's largest shareholders.
The Company has placed 4,570,000 ordinary shares to West Minerals Pty Ltd at the five day volume weighted average price (5 VWAP) of 7.94 cents per share. This will result in West Minerals Pty Ltd increasing its total interest to 11.7 million shares representing 17.6% of the issued shares in the Company. Each share will have an attaching option which entitles the holder to subscribe for one ordinary share in the Company at 15 cents per share during the period of two years from the date of issue.
International Base Metals Limited (IBML) will continue to provide both technical and administrative assistance to the Company under its existing Agreement and have offered to accept 5 VWAP priced shares in lieu of cash payment. The Independent Directors have accepted this offer. Any shares under this proposal will only be issued to IBML following shareholder approval. In the future this payment arrangement can revert to normal commercial terms at the discretion of the Company's Directors.
Non-Executive Directors have determined to cease the payment of Director's fees to Directors. All non-Executive Directors have expressed their intention to support the Company's initiatives without payment.
Shortly, Directors will call an Extraordinary General Meeting of the Company to seek shareholder ratification and approval for the IBML payment offer; to refresh Directors ability to place up to 15% of the Company's share capital and to consider the issuance of options to Directors and Officers of the Company, exercisable at 15 cents per share.
About Zamia Metals Limited
Zamia Metals Limited (ASX:ZGM) is an Australian mineral exploration company, targeting the Clermont district of central Queensland, a known gold and emerging porphyry mineral province. Numerous targets for gold, copper and molybdenum have been identified by geochemical and geophysical surveys. The Clermont district is highly prospective for gold, copper and other metals including molybdenum. The Belyando Gold Project is Zamia's flagship project – potentially a porphyry-style gold deposit including historic Belyando Gold Mine
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