Closing of $3 Million Strategic Investment by Eric Sprott KORE Announces Closing of $3 Million Strategic Investment by Eric Sprott
Canada NewsWire
VANCOUVER, Aug. 29, 2019
VANCOUVER, Aug. 29, 2019 /CNW/ - KORE Mining Ltd. ("KORE" or the "Company") is pleased to announce the closing of the $3,000,000 non-brokered private placement with Mr. Eric Sprott through 2176423 Ontario Ltd. (a company which he beneficially owns) consisting of 10,000,000 common shares at a price of $0.30 per share (the "Private Placement"), announced August 16, 2019.
Scott Trebilcock, President and CEO stated "In an environment with an increasing gold price, KORE and other under-valued gold resources have strong leverage to the gold price and can outperform it by many multiplies. Eric Sprott's investment indicates the start of such a market. KORE Management and Directors, who collectively own 46% of KORE's undiluted shares are pleased to welcome Eric as the third largest shareholder."
Mr. Eric Sprott owns 11.3% of KORE's undiluted shares. 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 on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Net proceeds of the Private Placement are expected to fund work on KORE's 100% owned gold portfolio: Long Valley (California), Gold Creek (BC) and FG Gold (BC), as well as for general working capital purposes. In addition, in May 2019, KORE raised $4 million from Macquarie Bank Ltd. to advance permitting of the Imperial oxide gold project in California.
Mr. Sprott acquired the common shares for investment purposes. A copy of 2176423 Ontario Ltd.'s early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1). All securities to be issued pursuant to the Private Placement are subject to a four month hold period.
KORE has paid a finders fee to Richardson GMP Ltd. in the amount of $60,000 in connection with the Private Placement.
About KORE
KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any KORE common shares in the United States. The KORE common shares to be issued in connection with the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.