Kalo Gold (KALO-V) Closing Of $1,573,663 Oversubscribed First Tranche Of Non-brokered Private Placement And Upsize Offering To $1.8 Million
July 22nd 2024 - NR
Kalo Gold Corp., further to its news release dated June 10, 2024, has closed the first tranche of a non-brokered private placement of common shares, raising proceeds of $1,573,663 by issuing 52,455,423 shares at three cents per share. The offering has been upsized from $1.5-million to $1.8-million.
The offering is led by a strategic investor, Ascentas Capital Management Ltd., for $1,084,662, which will hold an approximately 19.9-per-cent ownership of the company postoffering, on an undiluted basis. Ascentas is a Hong Kong-based investment company focused on venture investments. Terry L. Tucker, president and chief executive officer, Kevin Ma, executive vice-president and director, Michael Nesbitt, co-founder and director, and Fred Tejada, director, participated in the private placement. The insiders collectively purchased a total of $239,000 of the offering as follows:
Mr. Tucker, 2.5 million shares;
Mr. Ma, 3,033,333 shares;
Mr. Nesbitt, 2,166,667 shares;
Mr. Tejada, 266,666 shares.
Such participation constitutes a related party transaction within Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The issuance to the insiders is exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) as the fair market value of the consideration of the securities issued to the related parties did not exceed 25 per cent of the company's market capitalization.
The shares issued are subject to a statutory hold period expiring on Nov. 23, 2024.
The company intends to use approximately 85 per cent to 90 per cent of the net proceeds of the offering for exploration of the company's 100-per-cent-owned, royalty-free, 367-square-kilometre Vatu Aurum project, located in the Republic of Fiji, and for general working capital and marketing purposes. Exploration will include geological mapping, trenching and diamond drilling. The company will not be spending more than 10 per cent of the net proceeds of the offering toward any investor relations activities.
The second tranche will be expected to close on or around July 31, 2024. Finders' fees will be payable upon full completion of the offering.
ABOUT KALO GOLD CORP.
Kalo Gold Corp, a gold exploration company, is focused on exploration for low sulphidation epithermal gold deposits on the Vatu Aurum Project located on the island of Vanua Levu (North Island) in the Republic of Fiji. Kalo holds a 100% interest in two Special Prospecting Licenses, covering 367 km2 that hosts a regional scale back arc basin, the Nubu Graben, and several volcanic arc related calderas ranging between 1 km to 10 km in diameter. Historical exploration work concentrated on the Qiriyaga Hill and Vuinubu Ridge Gold Deposits and resulted in the identification of over fourteen additional priority epithermal gold exploration targets.
Both Viti Levu, (South Island), and Vanua Levu are on the prolific Pacific "Ring of Fire", a trend that has produced numerous large deposits, including Porgera, Lihir and Grasberg and on Viti Levu, the exceptional Vatukoula Gold Mine. The Vatukoula Gold Mine has produced more than 7 million ounces of gold since 1937 and continues operations today. The island of Viti Levu also hosts the fully permitted Tuvatu Alkaline Gold Project, where a high-grade underground gold mining operation and been fast tracked to production.
On behalf of the Board of Directors of Kalo Gold Corp.
Terry L. Tucker, P.Geo.
President and Chief Executive Officer
Kevin Ma, CPA, CA
Executive Vice President, Capital Markets and Director
For more information, please write to info@kalogoldcorp.com. |
