Kodiak Copper Corp revealed that it has closed its bought deal private placement financing for aggregate gross proceeds of approximately $5 million.
The Vancouver, British Columbia-based company said that the non-brokered private placement, which was announced with the offering on April 4, 2023, was upsized to $2.5 million two days later, and is expected to close on or about April 21, 2023.
Some insiders and shareholders of the company are expected to participate in the coinciding financing, noted the company.
After the offering a total of 1.50 million charity flow-through units (Charity FT units) were issued as part of a charity arrangement at a price of $1.32 per Charity FT share, and 3.70 million common share units (HD units) were issued at a price of $0.81 per HD unit for gross proceeds of $4,977,000.
Kodiak said each Charity FT unit consists of one common share and one-half of one common share purchase warrant, both of which qualify as flow-through shares. In the meantime, each HD unit consists of one non-flow-through share and one-half of one non-flow-through share purchase warrant.
Each FT warrant and warrant issuable under the offering will entitle the holder to buy one non-flow-through common share at an exercise price of $1.10 for a period of 24 months following the closing date.
Kodiak said the net proceeds from the issue of the HD units will be used for “working capital and general corporate purposes.” Kodiak’s most advanced mining asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia.
The offering was led by Cormark Securities Inc and included Canaccord Genuity (TSX:CF, LSE:CF). Kodiak paid the underwriters a cash commission of $298,050, which is equal to 6% of the gross proceeds of the offering for their services.
Insiders subscribed for a total of 24,000 HD units. The securities issued to the insiders under the offering are subject to a four-month hold period ending on August 15, 2023.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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