Kirkland Lake Discoveries upsizes brokered placement to about $12M
What's the deal? Kirkland Lake Discoveries Corp.Dealroom has a profile for this one. Try Dealroom → (TSXV: KLDC) has upsized its brokered "best efforts" private placement, now targeting aggregate gross proceeds of up to roughly US$12.7M. The Vancouver-based gold explorer struck an amendment agreement with Canaccord Genuity Corp.Dealroom has a profile for this one. Try Dealroom → and a syndicate of agents to expand the offering first announced on September 17.
The details: The round combines flow-through shares priced at US$0.29, special flow-through shares at US$0.35, and up to 14,285,714 common shares at US$0.26 for up to US$3.67M. The agents also hold an increased option to sell up to about US$2.11M of additional shares. The flow-through shares qualify under the Income Tax Act (Canada).
What's the endgame? Kirkland Lake has assembled a 420km² exploration portfolio in the Kirkland Lake region of Ontario's Abitibi Greenstone Belt, one of the world's most prolific mining districts. It says it is positioned to advance drill-ready targets at KL South, KL West, and KL East.
Why now? The offering is expected to close on or about October 8, subject to conditions including approval from the TSX Venture Exchange.
The signal: The raise sits in the top 8% of non-VC private placements in its geography and industry over the past four years, based on a sample of 556 comparable rounds. That places it among the larger financings for exploration-stage companies in the region — a bet that early-stage gold prospects can still command capital.
Read more: Business Insider
Image credit: Warrior Gold Inc.
