Kaminak Gold (KAM-V) July 14, '14 has entered into a subscription agreement with each of Ross Beaty, and Zebra Holdings and Investments Sarl, Luxembourg (a company owned by a trust which settlor was the late Adolf H. Lundin), pursuant to which each of the purchasers has agreed to make an investment of $6,76-million, collectively $13.52-million, into the company by way of a non-brokered private placement. Upon closing of the Private Placement, each of the Purchasers will own 9.98% of Kaminak's outstanding shares on a partially diluted basis assuming the exercise of Warrants (as defined below) acquired by such Purchaser. The Company's cash position will be approximately C$26.5 million following completion of the Private Placement.
The Subscription Agreements provide each Purchaser the right to nominate one person to the Company's board of directors and a pre-emptive right to participate in any future proposed equity offering of the Company in order to maintain its pro rata shareholding, subject to certain exceptions. These rights can only be exercised by a Purchaser if it owns more than a 5% interest in the Company.
Pursuant to the Private Placement, each Purchaser will acquire 8,450,000 units (the "Units") at a price of C$0.80 per Unit. Each Unit will consist of one common share and one-half of one share purchase warrant (each whole share purchase warrant a "Warrant"). Each Warrant will entitle the Purchaser to purchase one additional common share of the Company at a price of $1.20 for a period of 12 months from closing.
Eira Thomas, Kaminak President & CEO, commented, "Kaminak is very pleased to be welcoming both Ross Beaty and Zebra Holdings as significant new shareholders, at a pivotal time in our Company's history. Kaminak recently completed a Preliminary Economic Assessment for our Coffee Gold Project, which indicates a robust, high margin, rapid pay-back, 11 year, open pit, heap leach project in Canada at current gold prices. The Company will now have sufficient funds on hand to undertake a bankable feasibility study and advance the project towards a production decision."
All securities issued in the Private Placement will be subject to a statutory four month hold period. Closing of the Private Placement is subject to receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
The net proceeds of the Private Placement will be used to continue exploration and development of Kaminak's Coffee Gold Project in Yukon. |
