TORONTO, July 10, 2017 /PRNewswire/ - Kerr Mines
Inc. ("Kerr" or the "Company") (TSX: KER, OTCQB: KERMF, FRA:
7AZ1) announces that, further to its press release of
June 29, 2017 announcing the closing
of the first tranche of a proposed private placement (the "June
Release"), it has completed its previously announced private
placement of $8 million (the
"Offering").
In connection with the final tranche, the Company issued
8,803,896 million units of the Company (the "Units") at a
price of $0.18 per Unit for total
gross proceeds of approximately $1.6
million and combined with the first tranche as disclosed in
the Company's June Release, the Company has issued an aggregate of
44,444,434 Units for aggregate gross proceeds of approximately
$8 million. Each Unit of the
Offering is comprised of one common share (a "Common Share")
and one-half of one Common Share purchase warrant (a
"Warrant"), with each Warrant entitling the holder thereof
to acquire a Common Share at a price of $0.27 per share for a period of 24 months from
the date of issuance, provided, that if, at any time the Common
Shares trade on a stock exchange at a volume weighted average
trading price of CDN$0.40, or
greater, per Common Share for a period of 20 consecutive trading
days. The Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof and in such case the Warrants
will expire on the 30th day after the date on which such
notice is given by the Company. The securities issued pursuant to
the final tranche of the Offering are subject to a four month hold
period, expiring on November 11,
2017. The Company will use the net proceeds from the
Offering to finance its exploration program at its flagship
Copperstone Mine in Arizona and
for general working capital purposes.
Mr. Fahad Al Tamimi, who is the
Chairman of the Board, acquired a total of 4,876,130 Units in the
final tranche of the Offering. The Offering constituted a related
party transaction within the meaning of Multilateral Instrument
61-101 ("MI 61-101") as Mr. Al
Tamimi, an insider of the Company subscribed for an
aggregate of $877,703.40 in the final
tranche of the Offering. The Company is relying on the
exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(a) and
5.7(1)(a) of MI 61-101, as the fair market value of the
participation in the Offering by insiders does not exceed 25% of
the market capitalization of the Company, as determined in
accordance with MI 61-101. The Company did not file a
material change report in respect of the related party transaction
at least 21 days before the closing of the Offering, which the
Company deems reasonable in the circumstances so as to be able to
avail itself of the proceeds of the Offering in an expeditious
manner.
The Offering has been conditionally approved by the Toronto
Stock Exchange ("TSX") but remains subject to final approval
from the TSX.
About Kerr Mines Inc.
Kerr Mines is a North American
gold development and exploration company currently advancing the
fully permitted past-producing Copperstone Mine project.
Copperstone is a high-grade gold project located along the Walker
Lane mineral belt in mining-friendly Arizona. The project demonstrates significant
upside exploration potential within a 12,000 acre land package
which includes a production history of over 500,000 ounces of gold.
The Company's current focus is on maximizing Copperstone's
potential by defining and expanding current resources and
strengthening the mine's economics leading to a production
decision.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including
current expectations on the timing of the commencement of
production and the rate of production, if commenced. These
forward-looking statements entail various risks and uncertainties
that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are
based on current expectations, are subject to a number of
uncertainties and risks, and actual results may differ materially
from those contained in such statements. These uncertainties and
risks include, but are not limited to, the strength of the Canadian
economy; the price of gold; operational, funding, and liquidity
risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; and the degree to which
factors which would make a mineral deposit commercially viable are
present; the risks and hazards associated with underground
operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in
the Company's disclosure materials, including its annual
information form and MD&A, filed with the securities regulatory
authorities in Canada and
available at www.sedar.com and readers are urged to read these
materials. Kerr Mines assumes no
obligation to update any forward-looking statement or to update the
reasons why actual results could differ from such statements unless
required by law.
Neither TSX nor its Regulation Services Provider (as that term
is defined in the policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release and no stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
SOURCE Kerr Mines Inc.