pcNewsWire – K2 Gold Corporation (TSX-V: KTO) has completed previously announced non-brokered private placement of 2,301,400 units at $0.35 per unit and 986,250 flow through shares at $0.40 per FT share for gross proceeds of $1,199,990.
The net proceeds will be used by K2 principally towards its exploration program currently being conducted on the Wels Gold property, as well as exploration at its other properties located in the Yukon, and for general working capital purposes.
News Release
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K2 Gold Completes $1,199,990 Private Placement
Vancouver, B.C. – June 28, 2017 – K2 Gold Corporation (“K2” or the “Company”) (KTO:TSX-V) is pleased to announce that further to its news releases dated June 5, 2017 and June 12, 2017, the Company has completed its non-brokered private placement of 2,301,400 units (the “Units”) at a price of $0.35 per Unit and 986,250 flow through shares (the “FT Shares”) at a price of $0.40 per FT Share, for gross proceeds of $1,199,990 (the “Offering”).
Each Unit consists of one common share of the Company (a “Share”) and one-half of one non-transferable common share purchase warrant for a term of eighteen months (the “Warrants”). Each Warrant will entitle the holder thereof to purchase one additional common share of K2 at an exercise price of $0.55 per common share during the term of the Warrants, subject to the right of the Company to accelerate the expiry of the Warrants. If at any time after October 29, 2017 and during the Warrant Term, the common shares of the Company close at a price at or above $0.65 per share for more than 10 consecutive trading days (an “Acceleration Event”) and the Company elects to accelerate the expiry of the Warrants and give notice, within five days of such Acceleration Event, to the holders that an Acceleration Event has occurred, then the expiry of the Warrants will be accelerated such that the Warrants will then terminate 30 calendar days after the Company gives such notice (the “Accelerated Expiry”).
In connection with the Offering, K2 entered into finder’s fee agreements with four arm’s length finders, Canaccord Genuity Corp., Richardson GMP Ltd., PI Financial Corp., and Haywood Securities Inc., pursuant to which K2 issued 155,540 warrants (“Finder’s Warrants”) and paid cash finders’ fees in the aggregate of $57,064 (the “Cash Finders Fee”). Each Finder’s Warrant has the same terms as the Warrants issued under the Offering.
The net proceeds from the Offering will be used by K2 principally towards its exploration program currently being conducted on the Wels Gold property, as well as exploration at its other properties located in the Yukon, and for general working capital purposes.
All securities issued in connection with the Offering will be subject to a hold period expiring October 29, 2017.
About K2 Gold Corporation
K2 Gold Corporation is a mineral exploration company focused on building a portfolio of gold exploration projects in the Yukon, with an initial drill program on the Wels Property now underway. The Company has assembled an experienced management team and board of directors with a track record of discovery success.
For additional information please contact Stephen Swatton at 604-331-5090.
On behalf of the Board of Directors,
“Stephen Swatton”
President and CEO
K2 Gold Corporation.
