Kodiak Copper Corp said it has closed its previously announced, bought deal private placement financing and non-brokered private placement, raising total gross proceeds of C$9.6 million.
The company said the offering was oversubscribed, receiving strong interest from the institutional investor community and certain existing investors, such as Teck Resources Limited which exercised its equity participation right to maintain its 9.9% ownership position in Kodiak, acquiring about 1.4 million shares.
“With a treasury of around C$18 million, Kodiak is now very well positioned to further advance its MPD project in southern British Columbia where 2022 will see the largest exploration campaign on the property to date, as we are aiming to both extend the Gate Zone further and make more discoveries,” Kodiak Copper CEO Claudia Tornquist said in a statement.
READ: Kodiak Copper upsizes previously announced private placements to raise aggregate gross proceeds of C$8.56 million
“I am also looking forward to the maiden drill program at our Mohave project in Arizona this year,” Tornquist added.
A total of 4,375,000 charity flow-through (charity FT) common shares were sold, at a price of C$2.08 per charity FT share, for gross proceeds of C$9.1 million, including the full exercise of the underwriters' option.
The company also said it has completed a non-brokered private placement of 260,417 flow-through (FT) common shares, at a price of C$1.92 per share, for gross proceeds of C$0.5 million.
Kodiak noted that company insiders subscribed for a total of 167,708 FT shares.
The offering was led by Cormark Securities Inc and included Paradigm Capital Inc. A cash commission equal to 6% of the gross proceeds of the offering will be paid to the underwriters .
Both the charity and regular FT shares are subject to a four month hold period, expiring on August 1, 2022.
Kodiak Copper 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.
Contact Sean at sean@proactiveinvestors.com