Kainantu Resources Ltd (TSX-V:KRL) is kicking off a financing round to raise funds for exploration at its Papua New Guinea property.
The private placement includes up to 100 million shares at C$0.02 per share, with a potential gross proceeds of up to C$2 million.
Vancouver-based Kainantu plans to spend around US$500,000 of the proceeds on exploration. Another $500,000 will go towards fulfilling a payment obligation to Harmony Gold (NYSE:HMY) (PNG) Exploration Limited under an Asset Sale and Royalty Agreement from April 2022.
The remaining balance will be directed towards general administrative and working capital purposes.
Kainantu, or KRL, is an Asia-Pacific focused gold mining company that operates four promising gold-copper projects in Papua New Guinea: Kili Teke, KRL South, KRL North, and the May River Project.
The projects, situated in renowned mining regions, exhibit potential for high-grade epithermal and porphyry mineralization.
Kili Teke, in particular, is an advanced development project with an existing inferred mineral resource.