Kainantu Resources Announces Upsize to $2.7M of its Previously Announced $1.5M Financing
2022-01-12 09:29 ET – News Release
Mr. Matthew Salthouse reports
KAINANTU RESOURCES ANNOUNCES UPSIZE TO ITS PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT FINANCING
Kainantu Resources Ltd. has increased its previously announced private placement financing due to oversubscriptions. The offering was originally announced on Dec. 1, 2021, to raise gross proceeds of up to $1.5-million (which detailed the relevant financing terms), and, due to oversubscriptions, the offering was subsequently upsized to raise gross proceeds of up to $2-million as announced on Jan. 4, 2022, and has now been further upsized to raise total gross proceeds of $2.7-million.
Use of proceeds
The net proceeds from the offering are intended to be used, but are not limited to, exploration programs at KRL North and KRL South leading to delineation of drilling targets, sampling and technical reports for the May River project, and general working capital purposes.
Further deal terms
All terms of the offering remain the same, provided that the company intends to issue up to a total of 15 million units of the company at a price of 18 cents per unit for aggregate gross proceeds of up to $2.7-million under the full offering. Each unit comprises one common share of the company and one common share purchase warrant, with each warrant being exercisable for one common share at an exercise price of 36 cents per common share at any time up to 36 months following the closing date of the offering, subject to earlier expiry in certain circumstances.
The company closed the first tranche of the offering on Jan. 4, 2022. Under the first tranche of the offering, the company has issued an aggregate of 9,268,825 units to raise gross proceeds of an aggregate of $1,668,388.
A second and final tranche of the offering of up to an additional approximately $1-million is expected to close on or before Jan. 24, 2022.
Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX Venture Exchange.
In connection with the offering, the company may pay finder’s fees to certain finders, which fees would be a cash payment equal to 6 per cent of the gross proceeds raised by purchasers introduced by such finders, and the issuance of non-transferable compensation warrants equal to 6 per cent of the number of units purchased by purchasers introduced by such finders. Each such compensation warrant will be exercisable for one common share at an exercise price of 36 cents per common share at any time prior up to 36 months following the closing date of the offering and will be issued on substantially the same terms and conditions as the warrants, except that the compensation warrants will not be subject to an acceleration clause.
All securities issued pursuant to the offering and as payment of any finder’s fees, including common shares issuable upon the exercise of warrants or compensation warrants, if any, will be subject to a hold period of four months and one day after the date of closing of the offering.
About Kainantu Resources Ltd.
Kainantu is an Asia-Pacific-focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premiere mining region, the high-grade Kainantu gold district of Papua New Guinea. Both of KRL’s projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district. Kainantu has a highly experienced board and management team with a proven record of working together in the region; and an established in-country partner.
Matthew Salthouse, Chief Executive Officer (Tel: + 65 8318 8125)
Callum Jones, Corporate Development Co-ordinator (Tel: + 61 450 969 697)
IR / Financial PR Europe: Camarco
Gordon Poole / Nick Hennis
Tel: +44(0) 20 3757 4980
For further information please visit https://kainanturesources.com/