Ms. Claudia Tornquist reports
KODIAK ANNOUNCES C$10.5 MILLION FINANCING AND NEW STRATEGIC SHAREHOLDER
Teck Resources Ltd. has agreed to make a strategic investment in Kodiak Copper Corp. by way of a private placement.
- Kodiak strengthens its shareholder register by adding Teck, Canada's largest diversified resource company, with a 9.9-per-cent interest;
- The investment will provide Kodiak with capital to finance the company's continuing work program at its 100-per-cent-owned MPD copper-gold porphyry project in Southern British Columbia, including an expanded drill program.
Claudia Tornquist, president and chief executive officer of Kodiak, said: "Kodiak is delighted to welcome Teck as a shareholder. We view Teck's investment as a strong endorsement of the MPD project and Kodiak's management. With the proceeds of this private placement we will be able to expand on the momentum of our recent Gate zone discoveries, and test other porphyry targets across the MPD property through 2020 and 2021."
The placement will consist of 1,038,868 common shares of the company at a price of $1.95 per share and an additional 3,013,839 flow-through common shares of the company are expected to be placed through a charity flow-through arrangement at an average price of $2.82 per share (a cost to Teck of $1.95 per share), for total gross proceeds of approximately $10.5-million. Following the placement, Teck will own approximately 9.9 per cent of the issued and outstanding common shares of Kodiak on a non-diluted basis.
In connection with the placement, Kodiak has agreed to grant Teck an equity participation right to maintain its pro rata ownership in the company.
The proceeds from the placement will be used to advance the company's MPD project and other mineral projects, and for general corporate purposes.
The closing of the private placement is expected to occur on or before Oct. 6, 2020. Closing is subject to negotiation and execution of definitive documentation and receipt of all regulatory approvals including the acceptance of the TSX Venture Exchange. All securities issued in this placement are subject to customary hold periods of four months and one day. No fees were paid in connection with the financing.
About Kodiak Copper Corp.
Kodiak is focused on its 100-per-cent-owned copper porphyry projects in Canada and the United States. The company's most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia, Canada, where the company made a discovery of high-grade mineralization in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, United States, near the world-class Bagdad mine. Kodiak's porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
Kodiak's founder and chairman is Chris Taylor who is well known for his gold discovery success with Great Bear Resources. Kodiak is also part of Discovery Group, led by John Robins, one of the most successful mining entrepreneurs in Canada.
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