Kainantu Resources Ltd (TSX-V:KRL) said it has closed the second tranche of its upsized private placement financing to raise an aggregate of C$2.77 million for exploration at its Papua New Guinea gold projects.
The Vancouver-based resource company had originally intended to raise up to C$1.5 million, but the offering was oversubscribed.
Under the second and final tranche, Kainantu issued an aggregate of 6,118,667 units at a price of C$0.18 each to raise gross proceeds of C$1,101,360.
READ: Kainantu Resources announces further increase to its previously announced private placement financing due to oversubscriptions
Each unit is comprised of one share and one warrant, with each warrant exercisable at C$0.36 at any time up to 36 months following the closing date of the offering. The warrants are subject to acceleration in certain circumstances.
Kainantu has now issued a total of 15,387,492 units for aggregate gross proceeds of C$2.77 million under the full offering, including 9,268,825 units on January 4, 2022, to raise gross proceeds of C$1,668,388 under the first tranche.
"The oversubscribed financing is a testament to the operational progress and value accretive acquisitions KRL has executed in its first year of listing,” Kainantu CEO Matthew Salthouse said in a statement.
Salthouse told investors that, with the proceeds of the financing, the company will continue to drive exploration activities at KRL North and KRL South; where it is on track to delineate drilling targets at the East Avanionfi and Yaoro Ridge prospects. Kainantu will also conduct further studies on the copper and electric vehicle metal potential at its May River project, which sits within 10 kilometers of the Frieda River copper project, which boasts a resource of 12 million tonnes of copper and 19 million ounces of gold.
“Kainantu is well positioned to generate strong shareholder returns in 2022 given ongoing insider commitment, strong board and management and local Asia-Pacific on-the-ground expertise,” Salthouse added. “I look forward to 2022 as KRL continues to pursue our initiatives; with gold and copper forecast to rally in the current inflationary environment.”
Contact Angela at angela@proactiveinvestors.com
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