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RELEASE, PUBLICATION, DISTRIBUTION, DISSEMINATION, DIRECTLY OR
INDIRECTLY IN OR INTO THE UNITED
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VANCOUVER, BC, Jan. 4, 2022 /CNW/ - Kainantu Resources Ltd.
(TSXV: KRL) (FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to announce that it has closed the first tranche of its
previously announced upsized private placement financing of
$2 million (the "Offering"). The
Offering was originally announced on December 1, 2021 to raise gross proceeds of up to
C$1.5 million (which detailed the
relevant financing terms), and, due to oversubscriptions, the
Offering was subsequently upsized to raised gross proceeds of up to
C$2 million as announced on
January 4, 2022.
![Kainantu Resources Ltd. Logo (CNW Group/Kainantu Resources Ltd.) Kainantu Resources Ltd. Logo (CNW Group/Kainantu Resources Ltd.)](https://mma.prnewswire.com/media/1720063/Kainantu_Resources_Ltd__KAINANTU_RESOURCES_CLOSES__1_67M_FIRST_T.jpg)
Under the first tranche of the Offering, the Company has issued
an aggregate of 9,268,825 units of the Company (the "Units")
to raise gross proceeds of an aggregate of C$1,668,388. Each Unit is comprised of one common
share of the Company (each, a "Common Share") and one common share
purchase warrant (each, a "Warrant"), with each Warrant being
exercisable for one Common Share at an exercise price of
C$0.36 per Common Share at any time
up to 36 months following the closing date of the Offering, with
each Warrant being subject to acceleration in certain
circumstances.
A second and final tranche of the Offering of up to an
additional approximately C$0.3
million is expected to close on or before January 13, 2022.
Matthew Salthouse, CEO of KRL,
commented:
"We are encouraged by the enthusiastic response to our
inaugural financing post IPO and welcome new investors and
stakeholders to KRL as we grow and advance our portfolio of high
quality assets in Papua New
Guinea. There are several catalysts expected to come to KRL
in the first part of 2022 that we believe will continue generating
shareholder value."
Use of Proceeds
The net proceeds from the Offering are intended to be used, but
are not limited to, exploration programmes 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.
Finder's Fees
In connection with the Offering, the Company previously
announced it may pay cash finder's fees equal to 6% of the gross
proceeds raised from purchasers introduced by such finders, and the
issuance of non-transferable compensation warrants ("Compensation
Warrants") equal to 6% of the number of Units purchased by
purchasers introduced by such finders. Each such Compensation
Warrant is exercisable for one Common Share at an exercise price of
C$0.36 per Common Share at any time
prior up to 36 months following the closing date of the Offering
and have been issued on substantially the same terms and conditions
as the Warrants, except that the Compensation Warrants will not be
subject to an acceleration clause.
Upon the closing of the first tranche of the Offering, the
Company paid the following finder's fees and issued the following
Compensation Warrants to such finders:
Name of
Finder
|
Cash Finder's
Fees
|
Compensation
Warrants
|
Hampton Securities
Limited
|
$
40,127.88
|
222,932
|
PI Financial
Corp
|
$
11,520.00
|
60,000
|
Haywood Securities
Inc
|
$ 324.00
|
1,800
|
Jemini Capital
Inc
|
$
12,642.00
|
70,233
|
Intrynsync Capital
Corporation
|
$
16,620.00
|
96,333
|
Canaccord Genuity
Corp
|
$
14,850.00
|
82,500
|
TOTAL
|
$
96,083.88
|
533,798
|
All securities issued pursuant to the Offering, including Common
Shares issuable upon the exercise of Warrants or Compensation
Warrants, are and will be subject to a hold period of four months
and one day after the date of closing of the relevant tranche of
the Offering.
About Kainantu Resources (KRL)
KRL 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 which is famous for one of the newest and highest
grading gold mines K92 Mining (9g/t head grade).
Both of KRL's projects show potential to host high-grade
epithermal and porphyry mineralization, as seen elsewhere in the
district. KRL has a highly experienced board and management team,
with a proven track record of working together in the region; and
an established in-country partner in Asia Pacific Energy Ventures
(APEV).
Disclaimer and Forward-Looking Information
Statements contained in this release that are not historical
facts are forward-looking statements that involve various risks and
uncertainty affecting the business of KRL. In making the
forward-looking statements, KRL has applied certain assumptions
that are based on information available, including KRL's strategic
plan for the near and mid-term. There can be no assurance that such
information 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 information. KRL does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
Certain of the statements made and information provided in
this press release are forward-looking information within the
meaning of applicable Canadian securities laws. Often, these
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "continue",
"projected", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking information contained in this release
include, but are not limited to, statements or information with
respect to: the Offering, the Company's ability to close the
Offering and the use of proceeds from the Offering.
Forward-looking information by its nature is based on
assumptions and involves known and unknown risks, market
uncertainties and other factors, which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information.
We have made certain assumptions about the forward-looking
information. Even though our management believes that the
assumptions made and the expectations represented by such
information are reasonable, there can be no assurance that the
forward-looking statement or information will prove to be accurate.
Many assumptions may be difficult to predict and are beyond our
control.
Furthermore, should one or more of the risks, uncertainties
or other factors materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements or information. These
risks, uncertainties and other factors include, among others:
global outbreaks of infectious diseases, including COVID-19;
geopolitical and economic climate (global and local), risks related
to mineral tenure and permits; commodity price volatility;
information technology systems risks; continued softening of the
global market; risks regarding potential and pending litigation and
arbitration proceedings relating to our business, properties and
operations; mining operational and development risk; financing
risks; foreign country operational risks; risks of sovereign
investment; regulatory risks and liabilities including
environmental regulatory restrictions and liability; mineral
reserves and resources and metallurgical testing and recoveries;
additional funding requirements; currency fluctuations; community
and non-governmental organization actions; speculative nature of
exploration; dilution; share price volatility and the price of our
common shares; competition; loss of key employees; and defective
title to mineral claims or properties, as well as those risk
factors discussed in the sections titled "Forward-Looking
Information" and "Risk Factors" in the Company's Filing Statement
dated October 28, 2020. The reader is
directed to carefully review the detailed risk discussion in our
Listing Statement filed on SEDAR under our Company name, which
discussion is incorporated by reference in this release, for a
fuller understanding of the risks and uncertainties that affect the
Company's business and operations.
There can be no assurance that forward-looking information
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, you should not place undue reliance on the
forward-looking information contained herein. Except as required by
law, we do not expect to update forward-looking statements and
information continually as conditions change
SOURCE Kainantu Resources Ltd.