Gold explorer sells 20 million units to fund exploration, development
By Devika Patel
Knoxville, Tenn., Jan. 18 - Kenai Resources Ltd. said Monday it has arranged a non-brokered private placement of units. The offering is for C$5 million.
The company will sell 20 million units at C$0.25 apiece. Each unit consists of one common share and a half-share warrant. Each whole warrant is exercisable at C$0.35 for two years. The strike price reflects a 40% premium to the Jan. 14 closing share price of C$0.25.
Proceeds will be used for acquisition costs and initial exploration and development commitments under an option to purchase an interest in the Sao Chico gold project in Northern Brazil. The remaining funds will be used for working capital purposes.
Based in Vancouver, B.C., Kenai Resources explores gold properties.
| Issuer: | Kenai Resources Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$5 million
|
| Units: | 20 million
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.35
|
| Agent: | Non-brokered
|
| Pricing date: | Jan. 17
|
| Stock symbol: | TSX Venture: KAI
|
| Stock price: | C$0.32 at close Jan. 17
|
| Market capitalization: | C$9.37 million
|
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