VANCOUVER, British Columbia, June 13, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“ K92 ” or the “ Company ”) ( TSX: KNT ) is pleased to announce that it has entered into an agreement with Clarus Securities Inc. and Cormark Securities Inc., on behalf of a syndicate of underwriters (collectively, the “ Underwriters ”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 5,405,500 common shares (the “Common Shares”) of the Company at a price of C$9.25 per Common Share (the “ Offering Price ”) for aggregate gross proceeds to the Company of C$50,000,875.00 (the “ Offering ”).
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 810,825 Common Shares at the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$57,501,006.25.
The Company intends to use the net proceeds from the Offering for the continued expansion of the Kainantu Gold Mine, exploration near-mine and regionally and for general corporate and working capital purposes.
The Common Shares will be offered by way of a short form prospectus to be filed in each of the provinces of British Columbia, Alberta and Ontario, Canada, and by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.
The Offering is expected to close on or about July 6th, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (”TSX”).
The securities 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 U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About K92
K92 is engaged in the production of gold, copper and silver from the Kora and Judd deposits at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018 and is in a strong financial position.
The Company commenced an expansion of the mine based on an updated Preliminary Economic Assessment on the property which was published in January 2019 and updated in July 2020. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.
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