K92 Mining has closed its private placement financing raising oversubscribed for total gross proceeds of C$16,554,600. Most of the funds will be used for exploration and development of the company's Papua New Guinea Kainantu Gold Project.
A total of $13 million was arranged by Clarus Securities as lead agent, on behalf of a syndicate of agents that included CIBC World Markets, Eventus Capital Corp and Haywood Securities with an additional $3,554,600 arranged via a concurrent non-brokered private placement.
As well as exploration and development, proceeds are also intended for general corporate purposes.
For the brokered component of the offering, the agents received a cash commission equal to 7% of the gross proceeds. The agents also received compensation warrants equal to 7% of the number of units sold under the offering.
For the non-brokered component of the offering, the company paid cash finders' fees to certain finders totaling $140,448 and granted 175,560 Finder warrants. Each compensation warrant and finders warrant entitles the holder to purchase one common share of K92 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.