KERR MINES ANNOUNCES CLOSING OF OVERSUBSCRIBED $8,000,000 PRIVATE PLACEMENT
TORONTO, ONTARIO – July 10, 2017 – Kerr Mines Inc. (“Kerr” or the “Company”) (TSX: KER, OTCQB: KERMF, FRA: 7AZ1) announces that, further to its press release of June 29, 2017 announcing the closing of the first tranche of a proposed private placement (the “June Release”), it has completed its previously announced private placement of $8 million (the “Offering”).
In connection with the final tranche, the Company issued 8,803,896 million units of the Company (the “Units”) at a price of $0.18 per Unit for total gross proceeds of approximately $1.6 million and combined with the first tranche as disclosed in the Company’s June Release, the Company has issued an aggregate of 44,444,434 Units for aggregate gross proceeds of approximately $8 million. Each Unit of the Offering is comprised of one common share (a “Common Share”) and one‐half of one Common Share purchase warrant (a “Warrant”), with each Warrant entitling the holder thereof to acquire a Common Share at a price of $0.27 per share for a period of 24 months from the date of issuance, provided, that if, at any time the Common Shares trade on a stock exchange at a volume weighted average trading price of CDN$0.40, or greater, per Common Share for a period of 20 consecutive trading days. The Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company. The securities issued pursuant to the final tranche of the Offering are subject to a four month hold period, expiring on November 11, 2017. The Company will use the net proceeds from the Offering to finance its exploration program at its flagship Copperstone Mine in Arizona and for general working capital purposes.
Mr. Fahad Al Tamimi, who is the Chairman of the Board, acquired a total of 4,876,130 Units in the final tranche of the Offering. The Offering constituted a related party transaction within the meaning of Multilateral Instrument 61‐101 (“MI 61‐101”) as Mr. Al Tamimi, an insider of the Company subscribed for an aggregate of $877,703.40 in the final tranche of the Offering. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61‐101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‐101, as the fair market value of the participation in the Offering by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61‐101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Offering in an expeditious manner.
The Offering has been conditionally approved by the Toronto Stock Exchange (“TSX”) but remains subject to final approval from the TSX.
About Kerr Mines Inc.
Kerr Mines is a North American gold development and exploration company currently advancing the fully permitted past‐producing Copperstone Mine project. Copperstone is a high‐grade gold project located along the Walker Lane mineral belt in mining‐friendly Arizona. The project demonstrates significant upside exploration potential within a 12,000 acre land package which includes a production history of over 500,000 ounces of gold. The Company’s current focus is on maximizing Copperstone’s potential by defining and expanding current resources and strengthening the mine’s economics leading to a production decision.
For further information contact:
Fiona Grant Leydier