Kainantu Resources Extends Closing of Third Tranche of Its Previously Announced C$1.8 Million Convertible Debenture Financing
KAINANTU RESOURCES EXTENDS CLOSING
OF THIRD TRANCHE OF ITS PREVIOUSLY
ANNOUNCED C$1.8 MILLION CONVERTIBLE
DEBENTURE 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
,
Aug. 25, 2023
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0)
("KRL" or the "Company"), the
Asia-Pacific
focused gold mining company, announces an extension
to close the third and final tranche of its private placement financing of
C$1.8 million
(the "Offering"),
originally announced on
May 30, 2023
.
In the first tranche of the Offering, the Company has issued an aggregate of 6,289,551 senior
convertible debentures (the "First Tranche Debentures") at a price of
C$0.08
per First Tranche
Debenture to raise gross proceeds of
C$503,164.06
originally announced on
June 22, 2023
.
In the second tranche of the Offering, the Company has issued an aggregate of 3,710,449 senior
convertible debentures (the "Second Tranche Debentures") at a price of
C$0.08
per Second
Tranche Debenture to raise gross proceeds of
C$296,835.94
originally announced on
July 18, 2023
.
A final tranche of the Offering of up to an additional approximately
C$1.0 million
remains open and is
expected to close on or before
September 8, 2023
.
Closing of the third tranche of the Offering remains subject to approval from the TSX Venture
Exchange. The debentures issuable pursuant to thew third tranche of the Offering, the First Trance
Debentures and the Second Tranche Debentures (collectively the "Debentures") and the common
shares and warrants of the Company issuable upon conversion of the Debentures, and the common
shares issuable upon exercise of the warrants, are subject to a statutory hold period of four months
and a day ending on four months and a day after the date of issuance thereof, in accordance with
applicable securities law.
Use of Proceeds
The net proceeds from the Offering are intended to be used, but are not limited to, the potential
completion of the acquisition of the Kili Teke Project (which requires a further payment to
Harmony
Gold
(PNG) Exploration Limited of
US$400,000
as a condition of closing). In addition, proceeds will
be used to advance exploration programmes focusing on specific high-grade potential drilling targets
at KRL North (adjacent to K92), KRL South (focusing on the Ontenu target) and May River (primarily
at the Mountain Gate prospect). Proceeds will also be used for general working capital purposes.
Use of Proceeds
Amount
Weighting
Completion of Kili Teke Acquisition
C$530,000
38 %
Exploration activities
C$420,000
30 %
General Working Capital & Investor Relations
C$450,000
32 %
TOTAL
C$ 1,400,000
100 %
Finder's Fees
No finders' fees are payable on funds raised in in any tranches of the Offering.
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)
Kainantu Resources 'KRL' is an
Asia-Pacific
focused gold mining company with four highly
prospective gold-copper projects, the Kili Teke Project, 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
in close proximity to the world-renowned Frieda River Copper-Gold Project, with historical drilling
indicating the potential for significant copper-gold projects. 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
This release contains forward-looking statements, which relate to future events or future
performance and reflect management's current expectations and assumptions. Such forward-
looking statements reflect management's current beliefs and are based on assumptions made by
and information currently available to the Company. All statements, other than statements of
historical fact, are forward-looking statements or information. Forward-looking statements or
information in this news release relate to, among other things: the expected closing of a third
tranche of the Offering and use of proceeds from the closing of the first, second and third tranches
of the Offering the Conversion Price and the potential Consolidation. These forward-looking
statements and information reflect the Company's current views with respect to future events and
are necessarily based upon a number of assumptions that, while considered reasonable by the
Company, are inherently subject to significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include; success of the Company's projects;
prices for gold remaining as estimated; currency exchange rates remaining as estimated;
availability of funds for the Company's projects; capital, decommissioning and reclamation
estimates; prices for energy inputs, labour, materials, supplies and services (including
transportation); no labour-related disruptions; no unplanned delays or interruptions in scheduled
construction and production; all necessary permits, licenses and regulatory approvals are received
in a timely manner; and the ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive. The Company cautions the reader that forward-
looking statements and information involve known and unknown risks, uncertainties and other
factors that may cause actual results and developments to differ materially from those expressed
or implied by such forward-looking statements or information contained in this news release and
the Company has made assumptions and estimates based on or related to many of these factors.
Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy
inputs, labour, materials, supplies and services (including transportation); fluctuations in currency
markets (such as the Canadian dollar versus the U.S. dollar); operational risks and hazards
inherent with the business of mineral exploration; inadequate insurance, or inability to obtain
insurance, to cover these risks and hazards; our ability to obtain all necessary permits, licenses
and regulatory approvals in a timely manner; changes in laws, regulations and government
practices, including environmental, export and import laws and regulations; legal restrictions
relating to mineral exploration; increased competition in the mining industry for equipment and
qualified personnel; the availability of additional capital; title matters and the additional risks
identified in our filings with Canadian securities regulators on SEDAR+ in
Canada
(available at
www.sedarplus.ca
). Although the Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that cause results not to be as
anticipated, estimated, described, or intended. Investors are cautioned against undue reliance on
forward-looking statements or information. These forward-looking statements are made as of the
date hereof and, except as required under applicable securities legislation, the Company does not
assume any obligation to update or revise them to reflect new events or circumstances.
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 & Commercial Associate (Tel: + 61 450 969
697); Email: [email protected]; Corporate Advisor (Jemini Capital): Kevin Shum, Tel: +1 212 219
4670 (702), Email: [email protected]
CO: Kainantu Resources Ltd.
CNW 16:15e 25-AUG-23