Kainantu Resources Ltd. - News Releases
Summary
The Note is subject prior approval of the TSX Venture Exchange (TSX-V) and contains such other customary terms as appropriate.This funding represents a significant milestone for Kainantu Resources as we continue to unlock the value of our exploration assets, with particular focus on the Kili Teke project and targets at Ontenu, adjacent to K92.On closing, funds will be immediately deployed to these two projects, which are key initiatives on the pathway to building intrinsic value across the KRL portfolio.KRL thanks our investors and stakeholders for their ongoing support.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, including focusing on specific high-grade drilling targets at Ontenu in KRL South.Proceeds will also be used for general working capital purposes.The Offering is expected to close on or before June 10, 2023 and the Company will provide an update on the private placement in due course.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-V.In connection with the Offering, the Company may pay finders fees to certain finders, which fees would be a cash payment of up to 7% of the gross proceeds raised by purchasers introduced by such finders, and the issuance of non-transferable compensation warrants up to 7% of the number of Units purchased by purchasers introduced by such finders (each, a Finders Warrant). Each such Finders Warrant will be exercisable for one common share at an exercise price of C$0.12 per common share at any time prior 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 Finders Warrants will not be subject to an acceleration clause.Current shareholders of the Company, Snowfields Wealth Management Limited (SWML), a private British Virgin Islands holding company controlled by Geoff Lawrence, a director of the Company, and Season Cove Limited (SCL) a private British Virgin Islands holding company controlled by Iain Deay, will participate in the Offering.Accordingly, the participation of SWML and SCL in the Offering constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101). 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.sedar.com). 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.