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Be the first with the news that moves the market- Kesselrun Resources (KES) is looking to raise up to C$8 million to strengthen its balance sheet and fund exploration work in northwest Ontario
- The company intends to issue 10 million non-flow-through units to raise $4 million for general corporate purposes
- A further 8,888,888 flow-through units will also be issued to raise $4 million, which will go towards exploration activities
- The company owns 100 per cent of both the Huronian and Bluffpoint projects, which are located to the west of Thunder Bay
- Kesselrun Resources (KES) is currently steady at $0.36 per share
Kesselrun Resources (KES) is looking to raise up to C$8 million to strengthen its balance sheet and fund exploration work in northwest Ontario.
Under the terms of the placement, the company intends to raise $4 million by issuing 10 million non-flow-through units at a price of $0.40 each. These units will consist of one non-flow-through common share in Kesselrun and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional non-flow-through common share at a price of $0.70, exercisable over a period of 24 months from the date of issuance.
However, should Kesselrun’s average 20-day closing price exceed $1.00, the expiry date of the warrants may be brought forward.
The proceeds from this component will be used to strengthen the company’s balance sheet, primarily supporting general corporate activities.
Under a second component, Kesselrun is looking to raise a further $4 million by issuing 8,888,888 flow-through units at a price of $0.45 each. These units will consist of one flow-through common share and half of one purchase warrant.
Each whole warrant will be exercisable at a price of $0.70, also for a period of 24 months.
The expiry date of these warrants may also be brought forward should Kesselrun’s average 20-day share price exceed $1.00.
The company intends to use these proceeds to support exploration activities at its wholly owned Huronian and Bluffpoint projects, both of which are located to the west of Thunder Bay.
All of the securities issued under the placement will be subject to a mandatory holding period of four months and one day.
Kesselrun Resources (KES) is currently steady at $0.36 per share, as of 11:23am EDT.
