Kesselrun bumps private placement to C$5.0 Million

Kesselrun Resources Ltd. says due to significant demand, it has upsized the previously announced fully marketed private placement from C$3.0 million to C$5.0 million.

The net proceeds raised from the sale of Units will be used for the exploration and advancement of the Company's Huronian and Bluffpoint projects located in northwestern Ontario and for general working capital purposes.

Under the revised offering, the company will sell a minimum of C$2.0 million in units of the Company (the "Units") at a price of C$0.22 per Unit, with the remaining balance to be comprised of the sale of any combination of Units, traditional flow-through common shares of the Company (the "FT Shares") at a price of C$0.25 per FT Share and flow-through units of the Company (the "FT Units") sold to charitable flow-through purchasers at a price of C$0.305 per FT Unit. The Units, FT Shares and FT Units shall be collectively referred to as the "Offered Securities". Red Cloud Securities Inc. ("Red Cloud") is acting as sole lead agent and bookrunner under the Offering.

Each Unit shall be comprised of one common share in the capital of the Company (each a "Common Share") and one half of one Common Share purchase warrant (each a "Warrant"). Each FT Unit shall be comprised of one FT Share and one half of one Warrant. Each whole Warrant shall be exercisable into one Common Share at a price of C$0.33 at any time on or before the date which is 24 months after the closing date of the Offering.

The Company has granted Red Cloud an option, exercisable up to 48 hours prior to the closing date, to sell additional Offered Securities in any combination of Units, FT Shares and FT Units at the offering prices to raise additional gross proceeds of up to C$1,000,000. 

Proceeds from the sale of FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act ("Qualifying Expenditures"). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.

The Offering is scheduled to close on or about December 7, 2020, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the listing of the Offered Securities on the TSX Venture Exchange (the "TSXV"). Resale of the common shares of the Company distributed under the Offering will be restricted, including a hold period in Canada of four months and one day following the closing date of the Offering.

 

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