Kainantu Resources Ltd (TSX-V:KRL) said it had upsized a previously announced private placing, due to oversubscriptions, to raise C$2 million compared to C$1.5 million before.
The terms of the offering remain the same as announced in December 2020. Namely, the issue of up to 11,111,111 units at C$0.18 each, for total gross proceeds of up to C$2 million.
Each unit consists of one common company share and one common share purchase warrant, with each warrant being exercisable for one share at an exercise price of C$0.36 up to 36 months following closing.
An initial tranche to raise gross proceeds of around C$1.7 million is expected to close on or around January 4, 2022, with a second and final tranche to raise the remaining around C$0.3 million expected to close on or before January 13 this year, the resource firm noted.
READ: Kainantu Resources launches non-brokered private placement to raise up to C$1.5 million
"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," the company said in the statement.
Kainantu Resources is an Asia-Pacific-focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of Papua New Guinea (PNG).
Both of the company's projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district.
Kainantu Resources has a highly experienced board and management team with a proven track record of working together in the region; and an established in-country partner.
Contact the author at giles@proactiveinvestors.com