Kainantu Resources Closes C$1.75 Million First Tranche of its Private Placement Financing
Kainantu Resources Closes C$1.75 Million
First Tranche of its Private Placement
Financing
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VANCOUVER, BC
,
Dec. 22, 2023
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0)
("KRL" or the "Company"), is pleased to announce that it has closed the first tranche of its previously
announced private placement financing of
C$2,000,000
(the "
Offering
"), originally announced on
November 23, 2023
.
Under the first tranche of the Offering, the Company has issued an aggregate of 87,500,000
common shares of the Company (the "
Shares
") at a price of
C$0.02
per Share to raise gross
proceeds of
C$1,750,000
.
The Common Shares issued pursuant to the Offering are subject to a statutory hold period of
approximately four months ending on
April 23, 2024
, in accordance with applicable securities law.
A second and final tranche of the Offering of up to an additional approximately
C$250,000
remains
open and is expected to close in
January 2024
.
The net proceeds of the Offering will be used as follows: (i) to satisfy a
US$500,000
(approximately
C$685,000
) payment due to
Harmony Gold
(PNG) Exploration Limited ("
Harmony
") under the Asset
Sale and Royalty Agreement dated
April 6, 2022
with Harmony (which amount has been paid, see
news release on
December 1, 2023
), (ii) to carry out exploration work of approximately
US$500,000
(approximately
C$685,000
) on its properties in
Papua New Guinea
, and (iii) the balance on general
administrative and working capital purposes.
In connection with the first tranche of the Offering, the Company issued to the finder 875,000 Shares
and 875,000 share purchase warrants (each, a "
Compensation Warrant
"). Each such
Compensation Warrants will be exercisable for one Share at an exercise price of
C$0.05
per Share
at any time prior up to 36 months following the closing date of the Offering.
Multilateral Instrument 61-101 – Related Party Transaction
Snowfields Wealth Management Limited ("
Snowfields
") and Oceanside Strategies Inc.
("
Oceanside
") are all insiders of the Company by virtue of
Geoffrey Lawrence
, a director,
controlling Snowfields and
Dain Currie
, a director controlling Oceanside. Snowfields and Oceanside
participated in the first tranche of the Offering by purchasing 4,509,587 Shares, and 3,250,000
Shares, respectively, for an aggregate subscription price of
C$90,192
and
C$65,000
, respectively
and accordingly, the Offering constitutes a "related party transaction" for the Company within the
meaning of Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions
("MI 61-101"). The Company is exempt from the requirements to obtain a formal
valuation and minority shareholder approval under MI 61-101 as the fair market value of each of the
insider's participation in the Offering does not exceed more than 25% of the market capitalization of
the Company, as set forth in Sections 5.5(a) and 5.7(1)(a) of MI 61-101.
Neither 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.
About Kainantu Resources (KRL)
KRL is an
Asia-Pacific
focused gold mining company with four highly prospective gold-copper
projects,
Kili Teke
, KRL South, KRL North and the May River Project. All projects are located in
premier mining regions in PNG. Both KRL North and KRL South show potential to host high-grade
epithermal and porphyry mineralisation, as seen elsewhere in the high-grade Kainantu Gold District.
The May River project is near the world-renowned Frieda River Copper-Gold Project, with historical
drilling indicating the potential for significant copper-gold projects.
Kili Teke
is an advanced
development project with an existing inferred mineral resource. 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.
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.
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.
SOURCE
Kainantu Resources Ltd.
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For further information:
Kainantu Resources, Adam Clode, Interim Chief Executive Officer (Tel:
+65 6920 2020), Email: [email protected]
CO: Kainantu Resources Ltd.
CNW 16:00e 22-DEC-23