Kainantu Resources Closes $1.67M First Tranche of $1.5M Oversubscribed Financing
KAINANTU RESOURCES CLOSES $1.67M
FIRST TRANCHE OF $1.5M
OVERSUBSCRIBED FINANCING
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR RELEASE,
PUBLICATION, DISTRIBUTION, DISSEMINATION, DIRECTLY OR INDIRECTLY IN OR INTO
THE
UNITED STATES
/
VANCOUVER, BC
,
Jan. 4, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) ("KRL"
or the "Company"), the
Asia-Pacific
focused gold mining company, is pleased to announce that it has
closed the first tranche of its previously announced upsized private placement financing of
$2 million
(the "Offering"). The Offering was originally announced on
December 1, 2021
to raise gross
proceeds of up to
C$1.5 million
(which detailed the relevant financing terms), and, due to
oversubscriptions, the Offering was subsequently upsized to raised gross proceeds of up to
C$2
million
as announced on
January 4, 2022
.
Under the first tranche of the Offering, the Company has issued an aggregate of 9,268,825 units of
the Company (the "Units") to raise gross proceeds of an aggregate of
C$1,668,388
. Each Unit is
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, with each Warrant being subject to acceleration in certain
circumstances.
A second and final tranche of the Offering of up to an additional approximately
C$0.3 million
is
expected to close on or before
January 13, 2022
.
Matthew Salthouse
, CEO of KRL, commented:
"We are encouraged by the enthusiastic response to our inaugural financing post IPO and
welcome new investors and stakeholders to KRL as we grow and advance our portfolio of high
quality assets in
Papua New Guinea
. There are several catalysts expected to come to KRL in the
first part of 2022 that we believe will continue generating shareholder value."
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.
Finder's Fees
In connection with the Offering, the Company previously announced it may pay cash finder's fees
equal to 6% of the gross proceeds raised from purchasers introduced by such finders, and the
issuance of non-transferable compensation warrants ("Compensation Warrants") equal to 6% of the
number of Units purchased by purchasers introduced by such finders. Each such Compensation
Warrant is exercisable for one Common Share at an exercise price of
C$0.36
per Common Share at
any time prior up to 36 months following the closing date of the Offering and have been issued on
substantially the same terms and conditions as the Warrants, except that the Compensation
Warrants will not be subject to an acceleration clause.
Upon the closing of the first tranche of the Offering, the Company paid the following finder's fees and
issued the following Compensation Warrants to such finders:
Name of Finder
Cash Finder's Fees
Compensation Warrants
Hampton Securities Limited
$ 40,127.88
222,932
PI Financial Corp
$ 11,520.00
60,000
Haywood Securities Inc
$ 324.00
1,800
Jemini Capital Inc
$ 12,642.00
70,233
Intrynsync Capital Corporation
$ 16,620.00
96,333
Canaccord Genuity Corp
$ 14,850.00
82,500
TOTAL
$ 96,083.88
533,798
All securities issued pursuant to the Offering, including Common Shares issuable upon the exercise
of Warrants or Compensation Warrants, are and will be subject to a hold period of four months and
one day after the date of closing of the relevant tranche of the Offering.
About Kainantu Resources (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
Papua
New Guinea
which is famous for one of the newest and highest grading gold mines K92 Mining (9g/t
head grade).
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 in Asia
Pacific Energy Ventures (APEV).
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, Kevin Shum / Jerry Huang
[email protected], Tel: +1 (212) 219-4680 | +1 (647) 725-3888 ext 702
CO: Kainantu Resources Ltd.
CNW 19:32e 04-JAN-22