By Devika Patel
Knoxville, Tenn., Oct. 23 - KFG Resources Ltd. announced that it has raised C$694,500 in the second tranche of a previously announced private placement of units. The C$2 million deal priced on Sept. 7 with a greenshoe for C$500,000. The company said the greenshoe was fully exercised in this tranche, which settled on Oct. 19.
KFG sold 6,945,000 units in the second tranche at C$0.10 apiece. In the first tranche, the company sold 18,055,000 units for C$1.81 million.
As previously reported, each unit consists of one common share and one warrant. Each whole warrant is exercisable at C$0.20 for two years.
Union Securities Ltd. was the agent. KFG paid Union a work fee of C$10,000 plus expenses and an 8% commission. Union also received options to purchase up to 2.5 million units at C$0.10 per unit for two years. The agent's units have the same terms as the units sold in the placement.
Proceeds will be used for exploration and development of the company's property in Mississippi and for general working capital.
KFG, through its wholly owned subsidiary KFG Petroleum Corp., drills for and produces crude oil and natural gas in Mississippi, Kansas and Texas. It is based in Natchez, Miss.
| Issuer: | KFG Resources Ltd.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$2.5 million (including fully exercised greenshoe for C$500,000)
|
| Units: | 25 million (5 million units from greenshoe)
|
| Price: | C$0.10
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Placement agent: | Union Securities Ltd.
|
| Fees: | 8%; C$10,000; options to buy 2.5 million units
|
| Pricing date: | Sept. 7
|
| Stock symbol: | TSX Venture: KFG
|
| Stock price: | C$0.12 at close on Sept. 7
|
|
|
| First tranche
|
| Amount: | C$1,805,500
|
| Units: | 18,055,000
|
| Settlement date: | Oct. 11
|
|
|
| Second tranche
|
| Amount: | C$694,500
|
| Units: | 6,945,000
|
| Settlement date: | Oct. 19
|
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