news/spinout/more dilution une 20, 2017 – Vancouver, BC, Canada. – Dunnedin Ventures Inc. (the “Company“) (TSX-V: DVI) announces that it will conduct a non-brokered private placement of flow-through (each, a “FT Unit“) and non-flow through (each, a “NFT Unit“) units for gross proceeds of up to $4,000,000.
In order to accommodate the private placement, the date of record for a plan of arrangement to spin out rights to gold mineralization at the Company’s Kahuna project, Nunavut, will be amended from June 30, 2017 to July 17, 2017. Shareholders of record on July 17, 2017 will be entitled to receive a distribution of shares in a new gold entity. Additional details regarding the arrangement will be provided as they become available.
Each “FT Unit” will be offered at a price of $0.32 and will consist of one common share and one-half-of-one share purchase warrant entitling the holder to acquire an additional common share at a price of $0.40 for a period of twenty-four months. Each “NFT Unit” will be offered at a price of $0.25 and will consist of one common share and one-half-of-one share purchase warrant entitling the holder to acquire an additional common share at a price of $0.35 for a period of twenty-four months.
The share purchase warrants issued in connection with the FT Units and the NFT Units will be subject to accelerated expiry in the event the closing price of the common shares of the Company on the TSX Venture Exchange is $0.55 or greater for twenty consecutive trading days.
The Company will determine the allocation of FT Units and NFT Units based on investor interest. In the event only FT Units are issued, the private placement would result in the issuance of 12,500,000 FT Units. In the event only NFT Units are issued, the private placement would result in the issuance of 16,000,000 NFT Units.
The Company intends to use the proceeds of the private placement to advance its summer exploration program on the Kahuna project, and complete its previously announced spinout of rights associated with gold mineralization on that project. It is anticipated that a significant portion of the proceeds of the placement will be used to advance gold exploration work on the project and will form part of the assets of the spinout vehicle on completion of the spinout transaction.