Investor Shandong Gold to gain 17% interest in company through deal
By Devika Patel
Knoxville, Tenn., Sept. 8 - Kalahari Resources Inc. said it plans a C$3 million private placement of units.
The company will sell 60 million units at C$0.05 apiece to Shandong Gold Group Co. Ltd. Each unit consists of one common share and a warrant. Each two-year warrant is exercisable at C$0.10, a 100% premium to the Sept. 7 closing share price of C$0.05.
Following this, the investor will have an approximate 17% interest in the company.
Proceeds will be used for exploration on the company's Lamaque property as well as for general working capital.
"This private placement represents the first step in a long-term and growing partnership with one of China's largest gold producers," company director and interim chief financial officer John de Jong said in a press release. "We believe the transaction will be highly beneficial to both companies and their respective shareholders."
The resource exploration stage company is based in Vancouver, B.C.
| Issuer: | Kalahari Resources Inc.
|
| Issue: | Units of one common share and a warrant
|
| Amount: | C$3 million
|
| Units: | 60 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
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| Investor: | Shandong Gold Group Co. Ltd.
|
| Pricing date: | Sept. 8
|
| Stock symbol: | TSX Venture: KLA
|
| Stock price: | C$0.05 at close Sept. 7
|
| Market capitalization: | C$13.67 million
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