Kainantu Resources Ltd (TSX-V:KRL) has announced a further increase to its previously announced private placement financing due to oversubscriptions to raise up to C$2.77 million.
The offering was originally announced on December 1, 2021, to raise gross proceeds of up to C$1.5 million and, due to oversubscriptions, it has been further upsized.
The net proceeds from the offering are intended to be used, but are not limited to, exploration programmes at the company's KRL North and KRL South projects leading to delineation of drilling targets, sampling and technical reports for the May River Project, and general working capital purposes.
All terms of the offering remain the same, provided that the company intends to issue up to a total of 15,387,482 units at a price of C$0.18 per unit for aggregate gross proceeds of up to C$2.77 million under the full offering.
READ: Kainantu Resources increases its previously announced private placement financing to raise C$2.7 million due to oversubscriptions
Each unit will be comprised of one common share of the company and one common share purchase warrant, with each warrant being exercisable for one common share at a price of C$0.36 each 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 January 4, 2022. Under that first tranche, the company has issued an aggregate of 9,268,825 units to raise gross proceeds of an aggregate of C$1,668,388.
A second and final tranche of the offering of up to an additional approximately C$1.1 million is expected to close on or before January 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 (TSX-V).
All securities issued under 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.
The units being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a US person.
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 PNG. Both of KRL’s projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district.
The company 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 jon.hopkins@proactiveinvestors.com