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VANCOUVER, BC, Jan. 4, 2022 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is pleased to announce an increase of its private placement financing to raise up to C$1.5 million (the "Original Offering") due to oversubscriptions. The Original Offering was announced on December 1, 2021, and the Company is now announcing an increase to the Original Offering to raise gross proceeds of up to C$2 million (the "Offering").
Under the Offering, all terms of the Original Offering remain the same, provided that the Company intends to issue up to 11,111,111 units of the Company (each, a "Unit") at a price of C$0.18 per Unit for aggregate gross proceeds of up to C$2 million. Each Unit will be comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"), with each Warrant being exercisable for one Common Share at an exercise price of C$0.36 per Common Share at any time up to 36 months following the closing date of the Offering.
Use of Proceeds
The net proceeds from the Offering are intended to be used, but are not limited to, exploration programmes at KRL North and KRL South leading to delineation of drilling targets, sampling and technical reports for the May River Project, and general working capital purposes.
Further Deal Terms
An initial tranche of the Offering to raise gross proceeds of approximately C$1.7 million is expected to close on or about January 4, 2022, with a second and final tranche to raise the remaining approximately C$0.3 million expected to close on or before January 13, 2022.
Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX Venture Exchange ("TSX-V").