K9 Gold Announces Closing of Non Flow Through Portion of Private Placement Backed by Palisades Goldcorp and Funds Managed by Sprott Asset Managment LLP
K9 Gold Announces Closing of Non Flow
Through Portion of Private Placement Backed
by Palisades Goldcorp and Funds Managed by
Sprott Asset Managment LLP
Vancouver, British Columbia--(Newsfile Corp. - February 9, 2021) -
K9 Gold Corp. (TSXV: KNC)
(FSE: 5GP) (OTC Pink: WDFCF) ("K9" or the "Company")
is pleased to announce it has closed the
first tranche (the "First Tranche") of its non-brokered private placement (the "Private Placement") first
announced on January 22, 2021.
An increase in the size of the Private Placement was announced on February 1, 2021.
The First Tranche consisted of 2,855,000 non flow through units (the "NFT Units") at a price of $0.30 per
NFT Unit for proceeds of $856,500.
Each NFT Unit is comprised of one common share and one share
purchase warrant exercisable for a period of three years at a price of $0.40 per common share until
February 4, 2024.
The number of NFT Units issued exceeded that anticipated in the February 1, 2021 news release by
55,000 NFT Units.
A syndicate led by Palisades Goldcorp Ltd. purchased a total of 1,600,000 of the NFT Units in the First
Tranche.
The Company anticipates closing the second tranche (the "Second Tranche") of the Private Placement,
which will consist of 8,600,000 flow through units (the "FT Units") at a price of $0.35 per FT Unit on or
about February 19, 2021.
Each FT Unit will be comprised of one flow through common share and one
common share purchase warrant exercisable for a period of three years at a price of $0.40 per common
share.
Funds managed by Sprott Asset Management LLP have agreed to purchase 2,857,143 FT Units of the
Private Placement.
Total gross proceeds of the Private Placement (both the First Tranche and the Second Tranche in the
aggregate) are expected to be up to $3,866,500.
Proceeds from the Private Placement will be used for drilling and exploration on the Stony Lake East
Gold Project.
The NFT Units issued in the First Tranche are subject to a four month hold period expiring on June 5,
2021.
Cash finder's fees of 8% totaling $14,640 were payable on a portion of the NFT Units comprising the
First Tranche.
About Palisades Goldcorp
Palisades Goldcorp is Canada's resource focused merchant bank. Palisades' management team has a
demonstrated track record of making money and is backed by many of the industry's most notable
financiers. With junior resource equities valued at generational lows, management believes the sector is
on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in
undervalued companies and assets with the goal of generating superior returns.
Toll Free Number: (833) 434-GOLD (4653)
Kosta Tsoutsis
Director
K9 Gold Corp.
email:
Telephone: 604 808-9134
Brian Morrison
Chief Financial Officer and Director
K9 Gold Corp.
email:
telephone: 604 312-6910
The Company is listed on the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of
management regarding K9's intention to continue to identify potential transactions and make certain
corporate changes and applications. Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs, plans, expectations or intentions
regarding the future. Such statements are subject to risks and uncertainties that may cause actual
results, performance or developments to differ materially from those contained in the statements. No
assurance can be given that any of the events anticipated by the forward-looking statements will occur
or, if they do occur, what benefits K9 will obtain from them. These forward-looking statements reflect
managements' current views and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and uncertainties could cause actual results to
differ materially from those expressed or implied by the forward-looking statements, including K9's
inability to identify transactions having satisfactory terms or at all and the results of exploration or
review of properties that K9 does acquire. These forward-looking statements are made as of the date
of this news release and K9 assumes no obligation to update these forward-looking statements, or to
update the reasons why actual results differed from those projected in the forward-looking statements,
except in accordance with applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/74002