K92 Mining (KNT.V) announced it’s planning to raise C$5M through a non-brokered private placement by issuing 5 million units at C$1 per unit. Each unit will consist of one common share and ½ share purchase warrant, whereby every full warrant will entitle the warrant holder to purchase an additional share at C$1.50 during the first twelve months after the financing closes. The warrants do contain an acceleration clause and the expiry date can be shortened if the share price of K92 Mining is at least C$2 for 10 consecutive trading days.
Meanwhile, the restart of the operations at the Irumafimpa zone of the Kainantu mine in Papua New Guinea are advancing as planned, as the company says the mill feed system and crusher have now been fully commissioned. This means the company remains on track to produce its first gold before the end of August, and to send off a first shipment of concentrate before the end of the current quarter, which would be the very first incoming cash flow for the company.
Keep in mind today, July 12, some shares of a private placement become tradeable, so you might be able to get a good deal on the market in case someone tries to sell stock after the lockup expires. It’s remarkable how K92 is on track to become a gold producer just a few months after the company went public, and we are currently building an economic model to set our expectations for the post-ramp up production period.
Go to K92’s website
The author has a long position in K92 Mining. Please read the disclaimer
