K92 MNG INC COM NPV (OTCMKTS:KNTNF)
K92 MNG INC COM NPV (OTCMKTS:KNTNF) has entered into an agreement with a number of syndicate agents through Clarus Securities. Under the terms of the agreement, the agents have promised to raise up to C$16 million through an offering that involves the sale of 20 million units of the company.
C$16 Million Financing
Each unit comprises one common share priced at $C0.80. The Unit also consists of one Warrant entitling holders to the purchase a common share at an exercise price of $1.05.
The exploration and mining company plans to use proceeds from the offering to finance its exploration works as well as for general corporate purposes. The offering will close no later than June 21, 2017, subject to fulfillment if certain conditions.
Kora Deposit Discovery
The timing of the offering could not have been better, given that K92 Mining has discovered a high-grade extension of gold mineralization in one of the drill holes at the Kora Deposit. Given that result, the company is currently accelerating the exploration of 9 other holes in the initial drill study.
Kora is a large and high-grade deposit area that K92 Mining believes is open for expansion in every direction. It also has an inferred resource of about 4.36 million tones made up of 7.3 g/t Au, 35 g/t Ag and 2.23% Cu.
K92 MNG INC COM NPV (OTCMKTS:KNTNF) remains confident of commencing production in the first half of 2018 given that the area is considered highly prospective.
“The results from the first hole drilled by K92 on the Kora Vein System and first drilled from underground can only be described as outstanding […].The implication is that there is potential for this high-grade Kora Deposit to become much larger. With today’s results in hand, we will push the Kora drive at an increased pace and with an expanded drilling program,” said the chief executive officer, Ian Stalker.
Separately, K92 MNG INC COM NPV (OTCMKTS:KNTNF), in a press release, reports shareholders unanimously approved all the items put forward by the board of directors at an annual General Meeting held on May 24, 2017. All seven proposed individuals were nominated to the board of directors with the shareholders also approving the appointment of PricewaterhouseCoopers as auditors of the company. Shareholders also approved a new stock option plan.
K92 MNG INC COM NPV (OTCMKTS:KNTNF) stock shed 12.51% in market value to end Wednesday at $0.579 a share. The stock is currently trading at the lower end of its tight trading range of between $0.56 and $0.64 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $KNTNF and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.