Kapuskasing Closes First Tranche of Private Placement

Vancouver, B.C., April 16, 2015 - KAPUSKASING GOLD CORP. (TSX-V: KAP) (the "Company" or "Kapuskasing"), reports that it has closed the first tranche of a private placement announced March 20, 2015. A total of 653,000 flow-through units (the "FT Units") at a price of $0.075 per FT Unit have been issued for gross proceeds of $48,975 and a total of 715,000 non flow-through units (the "NFT Units") at a price of $0.0675 per NFT Unit have been issued for gross proceeds of $48,262.50 (the "Offering"). 

 

Each NFT Unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each purchase warrant will be exercisable into one common share at 10 cents for a period of 24 months from the closing of the financing. 

 

Each FT unit will consist of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one purchase warrant exercisable at 10 cents into one common share of the Company for a period of 24 months from the closing of the financing.

 

All securities issued in connection with the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws. Net proceeds of the private placements will be used to continue the Company's exploration programs on its properties in the Borden Gold camp located in Northern Ontario and for general working capital purposes. The Offering remains subject to final acceptance by the TSX Venture Exchange.

 

In connection with the Offering, the Company paid certain finders (the "Finders") a cash commission equal to 8% of the proceeds of the sale of FT Units and NFT Units by such Finder and issued finder's compensation warrants (the "Finder's Warrants") exercisable into one common share at 10 cents for a period of 24 months from the closing of the financing equal to 8% of the number of Units sold by such Finder. 

 

On behalf of the Board of Directors:

Dean Nawata

President & CEO, Director

Phone 1-604-561-2821

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Forward Looking Statements and Cautionary Notes

 

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kapuskasing, including, without limitation, receipt of final approval from the TSX Venture Exchange Although the forward-looking information contained in this press release is based upon what Kapuskasing's management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.

 

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

 

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Kapuskasing assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.