Kodiak Copper Corp said it has upsized its earlier announced agreement for a bought deal private placement basis to now raise aggregate gross proceeds to the company of C$8.56 million.
The company said the agreement with Cormark Securities Inc as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters will now see it issue 3,875,000 charity flow-through common shares (Charity FT Shares) at a price of C$2.08 each for aggregate gross proceeds to the company of C$8,060,000
Previously, the underwriters were to purchase 3,125,000 charity flow-through common shares (Charity FT Shares) of the company also at a price of C$2.08 each for aggregate gross proceeds to the company of C$6.00 million
The company has also granted the underwriters an option, exercisable at the offering price until the closing, to purchase up to an additional 500,000 of the Charity FT Shares issued in connection with the offering.
As previously announced, Kodiak said it will also be completing a non-brokered private placement of flow-through common shares (FT Shares) for aggregate gross proceeds of up to C$0.5 million. The FT Shares will be issued at a price of C$1.92 each. Certain insiders of the company will participate in the private placement.
READ: Kodiak extends the central Gate Zone at MPD project as it continues to intersect significant copper-gold grades
The Charity FT Shares and FT Shares qualify as 'flow-through shares' of the company for the purposes of the Income Tax Act (Canada). The gross proceeds from the offering and private placement will be used to incur 'Canadian exploration expenses' which also qualify as 'flow-through mining expenditures', as defined in the Income Tax Act (Canada)) related to Kodiak's projects in British Columbia. The company will renounce these expenses to the purchasers with an effective date of no later than December 31, 2022.
The offering and private placement are scheduled to close on or about March 31, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.
The Charity FT Shares and FT Shares will be subject to a four-month hold period from the date of closing.
Kodiak is focused on its 100%-owned copper porphyry projects in Canada and the United States. The company's most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel trough in south-central British Columbia, Canada, where the company made a discovery of high-grade mineralization within a wide mineralized envelope in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, US, near the world-class Bagdad mine.
Kodiak's porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
Kodiak's founder and chairman is Chris Taylor who is well known for his gold discovery success with Great Bear Resources (TSX-V:GBR). Kodiak is also part of Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada.
-- Updates to include placement upsizing --
Contact the author at jon.hopkins@proactiveinvestors.com