Kainantu Resources Announces $1.5 Million Private Placement Financing to Advance KRL North/South
Kainantu Resources Announces $1.5 Million
Private Placement Financing to Advance KRL
North/South
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/
Vancouver, BC
,
Dec. 1, 2021
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) ("KRL" or
the "Company"), the
Asia-Pacific
focused gold mining company, is pleased to announce a financing
to raise up to
C$1.5 million
(the "Offering").
Specifically, KRL announces a non-brokered private placement (the "Offering") for up to 8,333,333
units of the Company (each, a "Unit") at a price of
C$0.18
per Unit for aggregate gross proceeds of
up to
C$1,500,000
.
Each Unit will be comprised of one common share of the Company (each, a "Common Share") and
one common share purchase warrant (each, a "Warrant"), with each Warrant being exercisable for
one Common Share at an exercise price of
C$0.36
per Common Share at any time up to 36 months
following the closing date of the Offering.
Matthew Salthouse
, CEO of KRL, commented:
"After a successful first year of listing, KRL is venturing into 2022 with several significant catalysts
to pursue at KRL North, KRL South and the May River Project. Additional strategic discussions on
new projects will also continue, which will drive growth and KRL as a value proposition for
investors, as a new dynamic junior miner in the
Asia-Pacific
region.
The Company also remains focused on its projects in Kainantu and the ongoing trends emerging
for high-grade gold prospectivity, especially at the East Avaninofi Prospect and at KRL North; with
funds raised in the placement to be directly applied to these programmes to accelerate progress
towards clearly defined drilling targets near term."
Use of Proceeds
The net proceeds from the Offering are intended to be used, but are not limited to, exploration
programmes at KRL North and KRL South leading to delineation of drilling targets, sampling and
technical reports for the May River Project, and general working capital purposes.
Further Deal Terms
The Offering is expected to close on or before
December 31, 2021
.
Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of
all necessary regulatory approvals, including acceptance of the TSX Venture Exchange ("TSXV").
The Warrants will also be subject to an acceleration clause whereby, in the event the volume
weighted average trading price of the Common Shares on the TSXV is equal to or greater than
C$0.72
for a period of ten (10) consecutive trading days, the Company will have the right to
accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants
that the Warrants will expire on the date that is not less than 10 days from the date notice is
provided by the Company to the Warrant holders.
In connection with the Offering, the Company may pay finder's fees to certain finders, which fees
would be a cash payment equal to 6% of the gross proceeds raised by purchasers introduced by
such finders, and the issuance of non-transferable compensation warrants equal to 6% of the
number of Units purchased by purchasers introduced by such finders (each, a "Compensation
Warrant"). Each such Compensation Warrants will be exercisable for one Common Share at an
exercise price of
C$0.36
per Common Shares at any time prior up to 36 months following the closing
date of the Offering and will be issued on substantially the same terms and conditions as the
Warrants, except that the Compensation Warrants will not be subject to an acceleration clause.
All securities issued pursuant to the Offering and as payment of any finder's fees, including Common
Shares issuable upon the exercise of Warrants or Compensation Warrants, if any, will be subject to
a hold period of four months and one day after the date of closing of the Offering. As noted above
and subject to customary closing conditions, including the approval of the TSXV, the Offering is
expected to close on or before
December 31, 2021
. However, there is no assurance that the
Company will complete the Offering upon the terms set out above, or at all.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Units,
nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the securities laws of any such
jurisdiction. The Units being offered will not be, and have not been, registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold within
the United States
or to, or for the account or benefit of, a U.S. person.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of
the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Qualified Person
The scientific and technical information disclosed in this release has been reviewed and approved by
Graeme Fleming
, B. App. Sc., MAIG, an independent "qualified person" as defined under National
Instrument 43-101, Standards of Disclosure for Mineral Projects.
About KRL
KRL is an
Asia-Pacific
focused gold mining company with two highly prospective gold projects, KRL
South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of PNG. Both
of KRL's projects show potential to host high-grade epithermal and porphyry mineralization, as seen
elsewhere in the district. KRL has a highly experienced board and management team with a proven
track record of working together in the region; and an established in-country partner.
For further information please visit
https://kainanturesources.com/
Disclaimer and Forward-Looking Information
Statements contained in this release that are not historical facts are forward-looking statements
that involve various risks and uncertainty affecting the business of KRL. In making the forward-
looking statements, KRL has applied certain assumptions that are based on information available,
including KRL's strategic plan for the near and mid-term. There can be no assurance that such
information 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 information. KRL does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
Certain of the statements made and information provided in this press release are forward-looking
information within the meaning of applicable Canadian securities laws. Often, these forward-
looking information can be identified by the use of words such as "plans", "expects", "is expected",
"budget", "continue", "projected", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking information contained in this release include, but are not limited to, statements or
information with respect to: the Offering, the Company's ability to close the Offering and the use of
proceeds from the Offering.
Forward-looking information by its nature is based on assumptions and involves known and
unknown risks, market uncertainties and other factors, which may cause the actual results,
performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking information.
We have made certain assumptions about the forward-looking information. Even though our
management believes that the assumptions made and the expectations represented by such
information are reasonable, there can be no assurance that the forward-looking statement or
information will prove to be accurate. Many assumptions may be difficult to predict and are beyond
our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those described in
forward-looking statements or information. These risks, uncertainties and other factors include,
among others: global outbreaks of infectious diseases, including COVID-19; geopolitical and
economic climate (global and local), risks related to mineral tenure and permits; commodity price
volatility; information technology systems risks; continued softening of the global market; risks
regarding potential and pending litigation and arbitration proceedings relating to our business,
properties and operations; mining operational and development risk; financing risks; foreign
country operational risks; risks of sovereign investment; regulatory risks and liabilities including
environmental regulatory restrictions and liability; mineral reserves and resources and
metallurgical testing and recoveries; additional funding requirements; currency fluctuations;
community and non-governmental organization actions; speculative nature of exploration; dilution;
share price volatility and the price of our common shares; competition; loss of key employees; and
defective title to mineral claims or properties, as well as those risk factors discussed in the
sections titled "Forward-Looking Information" and "Risk Factors" in the Company's Filing Statement
dated
October 28, 2020
. The reader is directed to carefully review the detailed risk discussion in
our Listing Statement filed on SEDAR under our Company name, which discussion is incorporated
by reference in this release, for a fuller understanding of the risks and uncertainties that affect the
Company's business and operations.
There can be no assurance that forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements.
Accordingly, you should not place undue reliance on the forward-looking information contained
herein. Except as required by law, we do not expect to update forward-looking statements and
information continually as conditions change.
SOURCE
Kainantu Resources Ltd.
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For further information:
Kainantu Resources: Matthew Salthouse, Chief Executive Officer, (Tel: +
65 8318 8125); Callum Jones, Corporate Development Co-ordinator, (Tel: + 61 450 969 697),
Email: [email protected]; IR / Financial PR Europe: Camarco: Gordon Poole / Nick Hennis, Tel:
+44(0) 20 3757 4980; Financial PR North America: Jemini Capital: Jerry Huang / Kevin Shum
[email protected], Tel: +1 (212) 219-4680 | +1 (647) 725-3888 ext 702
CO: Kainantu Resources Ltd.
CNW 09:00e 01-DEC-21