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VANCOUVER, BC, Nov. 3, 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 private placement financing of C$2.5 million (the “Offering”), originally announced on October 19, 2022.
Under the first tranche of the Offering, the Company has issued an aggregate of 15,635,790 units of the Company (the “Units”) at a price of C$0.11 per Unit to raise gross proceeds of C$1,719,937. 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$0.22 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.
The Common Shares and Warrants issued pursuant to the Offering, as well as the Common Shares issuable upon exercise of the Warrants, if any, are subject to a statutory hold period of approximately four months ending on March 4, 2023in accordance with applicable securities law.
A second and final tranche of the Offering of up to an approximately additional C$0.8 million remains open and is expected to close on or about December 2, 2022.
Matthew SalthouseCEO of KRL, commented:
“In challenging markets, we are encouraged and pleased with the support from current and new investors participating in our tranche 1 raising. In particular, we are grateful for the ongoing commitment from the founding shareholder consortium.
Progress continues at our KRL North and KRL South/Ontenu prospects as we move towards defining potential high-grade drilling targets, with proceeds of the placement to support this work.”
Use of Proceeds
The net proceeds from the Offering are intended to be used, but are not limited to, the 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.
In connection with the Offering, the Company may pay finder’s fees to certain finders, which fees would be a cash payment equal …