K9 Gold (KNC) has closed a private placement for C$2.25 million with participation from prominent mining investor Eric Sprott.
The company closed the non-brokered offering of 7,499,934 units at $0.30 per unit for aggregate gross proceeds of $2,249,980.
Each unit is comprised of one K9 common share and one common share purchase warrant.
Each warrant entitles the holder to purchase one K9 common share for $0.40 up to 36 months from closing of the private placement.
Sprott, through 2176423 Ontario Ltd., a corporation which he beneficially owns, acquired 6,666,667 units for total consideration of $2,000,000.
He now beneficially owns and controls 6,666,667 K9 common shares and 6,666,667 warrants representing 12.6 per cent of the company on a non-diluted basis and 22.4 per cent on a fully diluted basis.
Sprott acquired the units for investment purposes and has a long-term view of the investment.
K9 Gold intends to use the proceeds for drilling and exploration on its Stony Lake East Gold Project and for general working capital.
K9 Gold is engaged in the business of identifying, acquiring and exploring for mineral interests.
K9 Gold (KNC) is up by 1.82 per cent and is currently trading at $0.56 per share as of 9:30 am ET.