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K92 Mining Inc. (“K92” or the “Company“) (TSX-Venture: KNT) is pleased to announce that it has closed its private placement financing previously announced on June 6th, 2017, which was oversubscribed, raising total gross proceeds of $16,554,600 (the “Offering”).
A total of $13,000,000 was arranged by Clarus Securities Inc. as lead agent, on behalf of a syndicate of agents that included CIBC World Markets Inc., Eventus Capital Corp. and Haywood Securities Inc. (collectively, the “Agents”) with an additional $3,554,600 arranged via a concurrent non-brokered private placement.
Pursuant to the Offering, the Company issued a total of 20,693,250 units (the “Units”) at a price of $0.80 per unit. Each Unit is comprised of one common share in the capital of the Company (“Common Share“) and one Common Share purchase warrant (“Warrant“), with each Warrant entitling the holder to purchase one Common Share at an exercise price of $1.05 for 12 months following the completion of the Offering.
The net proceeds raised from the Offering will be used by the Company for exploration and development of the Company’s mineral properties and for general corporate purposes.
For the brokered component of the Offering, the Agents received a cash commission equal to 7% of the gross proceeds of the Offering. The Agents also received compensation warrants equal to 7% of the number of Units sold under the Offering (each, a “Compensation Warrant”). For the non-brokered component of the Offering, the Company paid cash finders’ fees to certain finders totaling $140,448 and granted a total of 175,560 Finder Warrants (each, a “Finders Warrant”). Each Compensation Warrant and each Finders Warrant entitles the holder to purchase one common share of the Company at a price of $1.05 for a period of 12 months from the date of closing of the Offering.
All securities issued in connection with the Offering are subject to a four month plus one day hold expiring October 28, 2017.
The TSXV has in no way passed upon the merits of the Offering and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE COMPANY,
Chief Executive Officer and Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, use of proceeds, production, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding potential ongoing production which may or may not occur and the generation of further production assessment work at deposits, which may or may not occur. While commercial production is targeted, there is no assurance it will be achieved. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.