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VANCOUVER, BC, June 29, 2020 /CNW/ - KORE Mining Ltd. (TSXV: KORE) (OTCQB: KOREF) ("KORE" or the "Company") is pleased to announce it intends to complete a non-brokered private placement to raise gross proceeds of up to $7,500,000 consisting of 6,000,000 subscription receipts at a price of $1.00 per unit ("Non-FT Units") and 1,000,000 subscription receipts for flow through units at $1.50("FT Units") (collectively the "Private Placement"), subject to the approval of the TSX Venture Exchange and required shareholder approval.  

The Non-FT Units are being fully subscribed and invested into by Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by him. Assuming full conversion of the entirety of the subscription receipts in the Private Placement, Mr. Sprott's ownership will be approximately 22.53% on a non-diluted basis.

Mr. Eric Sprott commented, "I believe KORE is extremely under-valued and have positioned myself as their largest shareholder with over $12 million invested over the last ten months.  KORE owns 100% of three district scale exploration opportunities, all with shallow high-quality drill targets.  Add to that the Imperial PEA and the resources in the ground to back-stop value, KORE is setup to deliver out-sized returns."

Scott Trebilcock, President and CEO stated, "Mr. Sprott is a cornerstone investor in KORE and supports our vision to deliver value through exploration and development.  KORE will use the new capital to aggressively pursue our highest priority drill targets and accelerate Imperial into permitting."

Proceeds from the Private Placement will be placed in escrow on the closing, to be released to KORE on the receipt of all necessary shareholder and regulatory approvals (the "Approvals") to the creation of a new "Control Person" (as defined in the policies of the TSX Venture Exchange). On conversion, each subscription receipt will automatically convert into one Non-FT Unit and FT Unit, for no additional consideration. In the event that the Approvals are not obtained by October 31, 2020, each Subscription Receipt will be cancelled, and the subscription funds will be returned.  Mr. Sprott currently owns 16,318,444 common shares of KORE, representing 16.91% of the issued common shares on a non-diluted and on a fully diluted basis and is not a specified person in relation to KORE within the meaning of the Income Tax Act (Canada). The Private Placement, if converted and subject to the Approvals, will result in Mr. Sprott becoming a "control person" and will bring the balance of his interest in the Company to approximately 22.53% on a non-diluted basis and 25.07% on a partially diluted basis, assuming the full exercise of Mr. Sprott's Warrants.

Each Non-FT Unit will be comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each FT Unit will be comprised of one flow through common share of the Company and one-half of one Warrant.  Each Warrant shall be exercisable to acquire one Common Share (a "Warrant Share") at a price of $1.50per Warrant Share for a period of 24 months from the closing of the Private Placement. 

Net proceeds of the Private Placement are expected to advance KORE's 100% owned gold portfolio including Imperial (California), FG Gold (BC) and Long Valley (California) as well as for general corporate and working capital purposes. 

The gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as "Canadian exploration expenses" and "flow-through mining expenditures" both within the meaning of the Income Tax Act (Canada). 

The securities to be acquired by Mr. Sprott in the Private Placement are for investment purposes only. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company, including on the open market or through private acquisitions, or sell securities of the Company, including through the open market or through private dispositions, in the future, depending on market conditions, reformation of plans, and/or other relevant factors. 

All securities to be issued pursuant to the Private Placement will be subject to a four month hold period from the closing date under applicable securities laws in Canada and among other things, receipt by KORE of all necessary regulatory approvals, including the TSX Venture Exchange and required shareholder approval. 

About KORE

KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia.  KORE is supported by strategic investors Eric Sprott and Macquarie, who, together with the management and Board currently own 66% of the basic shares outstanding.  Further information on KORE and its assets can be found on the Company's website at www.koremining.com and at www.sedar.com, or by contacting us as info@koremining.com or by telephone at (888) 407-5450.