K92 Mining Announces $50 Million Bought Deal Offering
K92 Mining Announces $50 Million Bought Deal Offering
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, June 13, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT) is pleased
to announce that it has entered into an agreement with Clarus Securities Inc. and Cormark Securities Inc., on behalf of a syndicate of
underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis,
5,405,500 common shares (the “Common Shares”) of the Company at a price of C$9.25 per Common Share (the “Offering Price”) for
aggregate gross proceeds to the Company of C$50,000,875.00 (the “Offering”).
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 810,825 Common Shares at
the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the
over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$57,501,006.25.
The Company intends to use the net proceeds from the Offering for the continued expansion of the Kainantu Gold Mine, exploration near-
mine and regionally and for general corporate and working capital purposes.
The Common Shares will be offered by way of a short form prospectus to be filed in each of the provinces of British Columbia, Alberta and
Ontario, Canada, and by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States
which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis,
exempt from any prospectus, registration or other similar requirements.
The Offering is expected to close on or about July 6th, 2022 and is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the Toronto Stock Exchange (”TSX”).
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities
Act”), or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act
and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About K92
K92 is engaged in the production of gold, copper and silver from the Kora and Judd deposits at the Kainantu Gold Mine in the Eastern
Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine.
The Company declared commercial production from Kainantu in February 2018 and is in a strong financial position.
The Company commenced an expansion of the mine based on an updated Preliminary Economic Assessment on the property which was
published in January 2019 and updated in July 2020. K92 is operated by a team of mining company professionals with extensive
international mine-building and operational experience.
For further information, please contact David Medilek, P.Eng., CFA at +1-604-687-7130.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking
statements” under applicable Canadian securities legislation. All statements in this news release that address events or developments
that we expect to occur in the future are forward -looking statements. Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”,
“schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or
conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward -looking statements are based on the opinions and
estimates of management as of the date such statements are made. Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks, uncertainties and other factors, many of which are beyond our ability
to control, that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed
or implied by such forward -looking information. Such factors include, without limitation, Public Health Crises, including the COVID -19
Pandemic; changes in the price of gold, silver, copper and other metals in the world markets; fluctuations in the price and availability of
infrastructure and energy and other commodities; fluctuations in foreign currency exchange rates; volatility in price of our Common Shares;
inherent risks associated with the mining industry, including problems related to weather and climate in remote areas in which certain of the
Company’s operations are located; failure to achieve production, cost and other estimates; risks and uncertainties associated with
exploration and development; the fact that a feasibility studying of mineral reserves demonstrating economic and technical viability has not
been prepared for the Kainantu Mine; uncertainties relating to estimates of mineral resources including uncertainty that mineral resources
may never be converted into mineral reserves; the Company’s ability to carry on current and future operations, including development and
exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves
identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet
or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold, silver
and copper; inability of the Company to identify appropriate acquisition targets or complete desirable acquisitions; failures of information
systems or information security threats; political, economic and other risks associated with the Company’s foreign operations; geopolitical
events and other uncertainties, such as the conflict in Ukraine; compliance with various laws and regulatory requirements to which the
Company is subject to, including taxation; the ability to obtain timely financing on reasonable terms when required; the current and future
social, economic and political conditions, including relationship with the communities in jurisdictions it operates; other assumptions and
factors generally associated with the mining industry; and the risks, uncertainties and other factors referred to in the Company ’s Annual
Information Form under the heading “Risk Factors”. Estimates of mineral resources are also forward -looking statements because they
constitute projections, based on certain estimates and assumptions, regarding the amount of minerals that may be encountered in the
future and/or the anticipated economics of production, should mining occur. Forward -looking statements are not a guarantee of future
performance, and actual results and future events could materially differ from those anticipated in such statements. Although we have
attempted to identify important factors that could cause actual results to differ materially from those contained in the forward -looking
statements, there may be other factors that cause actual results to differ materially from those that are anticipated, estimated, or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company
disclaims any intention or obligation to update or revise any forward -looking statements, whether as a result of new information, future
events or otherwise, except as required by law.