K92 Mining (KNT-V) Receives $7.5 Million
Oct 12, '16 - NR
K92 Mining is pleased to announce the receipt of $7.5 million in new capital, via the exercise of 10 million warrants at $0.75.
The warrants were originally issued with a 2 year expiration (see K92 News Release July 13, 2016) and were subject to an acceleration right whereby if the common shares of K92 traded at $1.25 or greater for 10 consecutive days where a minimum of 30,000 common shares traded each day during such period, and a minimum daily average of 100,000 common shares traded during such period, then the Company had the option to accelerate the expiry date of the warrants to the 30th day following the date on which the Company provides notice as to such acceleration in accordance with the terms of the warrants.
As the Company's common shares did trade above $1.25 for at least 10 consecutive trading days, the Company provided an acceleration notice pursuant to the terms, whereby the expiration date for all 10 million warrants was accelerate to the first business day post October 8th, 2016.
Prior to the expiration of the warrants, the Company received cash totaling $7.5 million to effect the exercise.
K92 Chief Executive Officer, Ian Stalker, states, "We are very pleased with the injection of this additional $7.5 million in capital as it gives us an enhanced ability to target both resource expansion and production expansion. In particular, the additional capital will be useful as we commence the completion of the underground incline drive from the Irumafimpa Deposit to the Kora Deposit, while drilling from underground set-ups in the previously untested area between."
While funded for the production restart at the commencement of trading on May 25th, 2016, K92 has raised an additional $26 million since May 25th via two private placement financings and various warrant exercises, including the exercise announced today.
K92 recently announced that gold production at the Irumafimpa Deposit has commenced, on schedule and on budget.
On behalf of Management,
Ian Stalker
Chief Executive Officer and Director
K92 Mining Inc.
(604) 687-7130
(604) 608-9110
k92mining.com |
