Kainantu Resources Ltd (TSX-V:KRL) reported that it had closed the first tranche of the previously announced upsized placing, raising gross proceeds of C$1,668,388.
As reported on January 4 this year, the company had upsized the financing, due to oversubscriptions, to raise C$2 million compared to C$1.5 million previously.
"We are encouraged by the enthusiastic response to our inaugural financing post IPO and welcome new investors and stakeholders to KRL as we grow and advance our portfolio of high quality assets in Papua New Guinea," said Matthew Salthouse, CEO of KRL in a statement.
"There are several catalysts expected to come to KRL in the first part of 2022 that we believe will continue generating shareholder value," he added.
Under the first tranche, Kainantu issued 9,268,825 units with each comprising one common company share and one common share purchase warrant.
Each warrant is exercisable for one common share at C$0.36 each for 36 months following closing, with each warrant being subject to acceleration in certain circumstances.
READ: Kainantu Resources upsizes previously announced placing to C$2M
A second and final tranche of the offering of up to an additional around C$0.3 million is expected to close on or before January 13 this year.
"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 has said.
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