Kaminak Gold Corp. (
TSX: V.KAM,
Stock Forum) shares took a big jump Monday on news that some well-heeled players have stepped up to invest $13.5 million in the company via a non brokered private placement.
The Yukon gold project developer said Ross Beaty, and Zebra Holdings and Investments S.a.r.l., Luxemborg (a company owned by a trust whose settler was the late Adolf Lundin) have each agreed to invest $6.7 million in Kaminak.
That was enough to send the stock up 33% to $1.05, leaving a market cap of $98.1 million, based on 93.4 million shares outstanding. The 52-week range is $1.06 and 45.5 cents.
Beaty is a well known mine financier, known for building and selling companies such as
Pan American Silver Corp. (
TSX: T.PAA,
Stock Forum),
Lumina Copper Corp. (
TSX: V.LCC,
Stock Forum) and others.
Lundin is the late head of well known mining family (now led by his son, the
Lundin Mining Corp. (
TSX: T.LUN,
Stock Forum) Chairman Lukas Lundin) that was infamous for going into risky areas of the world and capturing large mining projects ahead of the competition.
Upon completion of the private placement, Beaty and Zebra Holdings will each own just under 10% of Kaminak, leaving it with $26.5 million in cash.
Under the terms of the private placement, each of the purchasers will acquire 8.45 million units at 80 cents per unit. Each unit will consist of one common share and one half of one share purchase warrant. Each warrant will entitle the holder to buy an additional common share of the company at $1.20 per share for a period of 12 months.
“Kaminak is very pleased to be welcoming both Ross Beaty and Zebra Holdings as significant new shareholders, at a pivotal time in our history,’’ said Eira Thomas, Kaminak’s President and CEO.
The net proceeds are earmarked for Kaminak’s Coffee Gold Project in the Canadian Yukon, which is estimated to host a gold resource of about 4.3 million ounces.
Subject to board approval, a company spokesman said Kaminak now has sufficient funds on hand to undertake a feasibility study for a mine that is expected to cost over $300 million to develop.