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Kainantu Resources closes final tranche of previously announced private placement financing for $2.5M in total

Published: 22:35 25 Jan 2023 AEDT

Canadian dollars and gold
Under the final tranche of the offering, Kainantu Resources issued an aggregate of 7,098,940 units for gross proceeds of C$780,883.41

Kainantu Resources Ltd (TSX-V:KRL) (KRL) said it has closed the final tranche of its previously announced private placement financing of $2.5 million, originally announced on October 19, 2022.

In a statement, Matthew Salthouse, CEO of KRL, commented: "We are pleased to close the placement in the current market and believe this supports the operations and ongoing progression of the company towards an initial drilling campaign. In addition, ongoing discussions with Harmony to progress with the Kili Teke acquisition shows the commitment of both parties to closing this acquisition."

The company said the net proceeds from the final tranche of the offering 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.

READ: Kainantu Resources updates on exploration campaign at its KRL North site

Under the final tranche of the offering, the company issued an aggregate of 7,098,940 units at a price of C$0.11 each to raise gross proceeds of C$780,883.41. As previously announced, under the first tranche of the offering, the company issued an aggregate of 15,635,790 units at a price of C$0.11 each to raise gross proceeds of C$1,719,937. 

Each unit in the offering is comprised of one common share of the company and one common share purchase warrant, with each warrant being exercisable for one common share at an exercise price of C$0.22 each at any time up to 36 months following the closing date of the offering, with each warrant being subject to acceleration in certain circumstances.

Snowfields Wealth Management Limited, a company controlled by Geoffrey Lawrence, a non-executive director of the company, participated in the final tranche of the offering by purchasing 3,689,664 units for an aggregate subscription price of C$405,863.05.

Marcus Engelbrecht, the company's non-executive chairman also participated in the final tranche of the offering by purchasing 181,820 units for an aggregate subscription price of C$20,000.20.

The common shares and warrants issued under the final tranche of the offering, as well as the common shares issuable upon exercise of the warrants, if any, are subject to a statutory hold period of four months and a day ending on May 24, 2023, in accordance with applicable securities law. No finders' fees were incurred in the final tranche of the private placement.

Kainantu Resources is an Asia-Pacific-focused gold mining company with three highly prospective gold-copper projects, KRL South, KRL North and the May River Project. All projects are located in premier mining regions in Papua New Guinea (PNG). 

Contact the author at jon.hopkins@proactiveinvestors.com

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