K92 Mining has closed, fully subscribed, the non-brokered private placement announced on March 15, for gross proceeds of $10 million. Funds will be used to advance the Kainantu Gold Project in Papua New Guinea.
The Canadian company says the works funded by the placement of more than 13 million units at a price of $0.75 will include grade control, expansion and exploration drilling, and work on the underground incline drive to Kora as well as for general corporate purposes.
All securities issued pursuant to the financing are subject to a four month hold expiring on July 22, 2017.
Each unit consists of one common share and one common share purchase warrant. Each warrant will allow the holder to purchase one common share of K92 at a price of $1.00 for a period of 12 months from the date of issuance.
In connection with the financing and subject to TSXV approval, K92 intends to pay a finder’s fees of an aggregate of 1,053,333 shares and 1,053,333 warrants to various finders.