Zephyr Minerals annouces private placement & provides Dawson Gold Project update

Trading Symbol:  TSX-V: ZFR
Shares Outstanding: 33,395,961                                                               

HALIFAX, Nov. 7, 2016 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR | OTC: ZPHYF) is pleased to announce that it has arranged a non­brokered private placement financing of $600,000 comprising the sale of 1,875,000 units at a price of $0.32 per unit (the "Private Placement"). Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.38 per common share at any time on or before the 12-month anniversary of the closing of the offering.

In connection with the offering, a finder's fee consisting of a cash commission equal to 7% of the gross proceeds raised under the offering and that number of non-transferable finder's fee warrants as is equal to 7% of the number of shares will be paid. Each finder's fee warrant will be exercisable into one common share of the Company at $0.38 per share, for a period of 12 months from the closing date. Net proceeds from the funds raised will be used to advance the Dawson Gold Project ("Dawson") in Colorado, USA, and for general working capital purposes. All shares and warrants are subject to a four-month hold period.

The Private Placement is subject to acceptance by the TSX Venture Exchange and required regulatory approvals.

Dawson Project Update

Progress continues to be made on key activities integral to Zephyr's consultants, Golder & Associates ("Golder"), completing a Preliminary Economic Analysis ("PEA") by late December 2016. The PEA will include a process plant design for a 300 short tons per day facility with built in expansion capability, a dry stack tailings facility, and an updated NI 43-101 resource estimate for the Windy Gulch zone. This updated resource estimate will be utilized by Golder to complete a new preliminary open pit mine plan.  The Windy Gulch zone is being targeted for a potential starter open pit while development is underway at the potential underground mine on the Dawson zone.  The preliminary mine plan for the Dawson zone was completed and filed in a NI 43-101 report on 7 October 2016. A PEA is based on mineral resource. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Permitting for extensive road construction to support proposed trenching and drilling programs in 2017 is currently underway and is expected to be in hand early 2017.  Trenching has proved to be both a cost and technically effective method for evaluating near surface gold mineralization at Dawson. In addition to drill targets on the Copper King and Windy Gulch areas, the Company plans to follow up on favourable drill results achieved in an initial drill campaign by a previous explorer in 1990. Highlights from this historic drill campaign include:

Future drill programs will be targeted with the objective of expanding this near surface gold mineralization.

About Zephyr Minerals Ltd.

Zephyr Minerals Ltd. is a gold exploration and development company focused on advancing its flagship intrusion related shear hosted high grade Dawson Gold Project in Colorado, USA. Zephyr is conducting engineering and development studies along with additional exploration with a goal of completing a PEA as part of its efforts to advance the Dawson Project with the ultimate goal of production.

To be included in the Zephyr email database for Company updates please contact info@zephyrminerals.com. You can also visit our website, www.zephyrminerals.com, or find us on Facebook for more information.

Mr. Mark Graves, P.Geo. registered with the Association of Professional Geoscientists of Nova Scotia (APGNS), has verified the scientific and technical information in this news release.

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the use of funds from the private placement.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company, including, with respect to the use of funds from the private placement, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the exploration work on the Dawson Gold Property.

The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Zephyr Minerals Ltd.