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Kainantu Resources Ltd
Symbol KRL
Shares Issued 45,305,734
Close 2021-12-31 C$ 0.17
Recent Sedar Documents

Kainantu Resources increases financing to $2-million

2022-01-04 10:09 ET - News Release

Mr. Matthew Salthouse reports

KAINANTU RESOURCES ANNOUNCES UPSIZE TO ITS PREVIOUSLY ANNOUNCED $1.5 MILLION PRIVATE PLACEMENT FINANCING

Kainantu Resources Ltd. has increased its private placement financing to raise up to $1.5-million due to oversubscriptions. The original offering was announced on Dec. 1, 2021, and the company is now announcing an increase to the original offering to raise gross proceeds of up to $2-million.

Under the offering, all terms of the original offering remain the same, provided that the company intends to issue up to 11,111,111 units of the company at a price of 18 cents per unit for aggregate gross proceeds of up to $2-million. Each unit comprises 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 36 cents per common share at any time up to 36 months following the closing date of the offering.

Use of proceeds

The net proceeds from the offering are intended to be used, but are not limited to, exploration programs at KRL North and KRL South leading to delineation of drilling targets, sampling and technical reports for the May River project, and general working capital purposes.

Further deal terms

An initial tranche of the offering to raise gross proceeds of approximately $1.7-million is expected to close on or about Jan. 4, 2022, with a second and final tranche to raise the remaining approximately $300,000 expected to close on or before Jan. 13, 2022.

Completion of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX Venture Exchange.

In connection with the offering, the company may pay finder's fees to certain finders, which fees would be a cash payment equal to 6 per cent of the gross proceeds raised by purchasers introduced by such finders, and the issuance of non-transferable compensation warrants equal to 6 per cent of the number of units purchased by purchasers introduced by such finders. Each such compensation warrants will be exercisable for one common share at an exercise price of 36 cents per common shares at any time prior up to 36 months following the closing date of the offering and will be issued on substantially the same terms and conditions as the warrants, except that the compensation warrants will not be subject to an acceleration clause.

All securities issued pursuant to the offering and as payment of any finder's fees, including common shares issuable upon the exercise of warrants or compensation warrants, if any, will be subject to a hold period of four months and one day after the date of closing of the offering.

About Kainantu Resources Ltd.

Kainantu Resources is an Asia-Pacific-focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu gold district of Papua New Guinea. Both of Kainantu's projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district. Kainantu has a highly experienced board and management team with a proven record of working together in the region; and an established in-country partner.

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