Brokered deal raises financing for exploration of the Coffee project
By Devika Patel
Knoxville, Tenn., Nov. 16 - Kaminak Gold Corp. said it completed a C$12.03 million private placement of stock. The deal priced for C$10.01 million with a C$2 million greenshoe on Oct. 21.
The company sold 3,342,600 flow-through common shares at C$3.60 per share for C$12.03 million. The price per share is a 13.21% premium to the Oct. 20 closing share price of C$3.18.
The deal was conducted by a syndicate of underwriters led by Canaccord Genuity Corp. and including Fraser Mackenzie Ltd. and Paradigm Capital Inc.
"It was the right people, the right terms and the right price," Tony Reda, vice president of corporate development, said of the deal. "And it sends a message that we plan a very aggressive program next year."
Reda said that while the 2011 exploration budget had not yet been finalized, he expected the company to spend at least C$15 million - about double this year's program - on its various projects.
"With the cash in place, that monkey is off our back," he said. "We don't have to go back to the market again."
Reda also noted that the company received favorable terms.
"It was very attractive terms that only certain companies can demand," he remarked.
Proceeds will be used for exploration of the Coffee project.
Vancouver, B.C.-based Kaminak is a gold, uranium and nickel exploration company.
Stephanie N. Rotondo contributed to this article
| Issuer: | Kaminak Gold Corp.
|
| Issue: | Flow-through common shares
|
| Amount: | C$12,033,360 (including C$2 million greenshoe)
|
| Shares: | 3,342,600
|
| Price: | C$3.60
|
| Warrants: | No
|
| Agents: | Canaccord Genuity Corp. (lead), Fraser Mackenzie Ltd. and Paradigm Capital Inc.
|
| Pricing date: | Oct. 21
|
| Settlement date: | Nov. 16
|
| Stock symbol: | TSX Venture: KAM
|
| Stock price: | C$3.10 at close Oct. 21
|
| Market capitalization: | C$147.55 million
|
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