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Kivalliq Energy Corporation (TSXV:KIV) has closed the final tranche of a C$2,779,119 private placement for gross proceeds of roughly C$1.25 million. Proceeds from the placement will be used for corporate purposes and to fund mineral exploration in Saskatchewan and in Canada’s Nunavut territory.
As part of this final tranche, Kivalliq has issued an additional 10,469,166 non-flow-through units (“NFT Units”), at the price of CDN$0.12 per NFT Unit for gross proceeds of CDN$1,256,299. Each NFT Unit consists of one non-flow through common share and one-half of one non-transferable, non-flow-through common share purchase warrant. Each whole warrant will be exercisable into a non-flow-through common share of Kivalliq for a period of 24 months from the closing date at an exercise price of CDN$0.18 per warrant share.
On April 20, Kivalliq announced the Closing of the first tranche of the Placement by issuing 10,152,134 flow-through units (“FT Units”) at the price of CDN$0.15 per FT Unit for gross proceeds of $1,522,820.
With the Closing of this Placement, Kivalliq raised CDN$2,779,119 by issuing an aggregate of 20,621,300 units, as follows:
- CDN$1,522,820 gross proceeds by issuing 10,152,134 FT Units, at the price of CDN$0.15 per FT Unit;
- CDN$1,256,299 gross proceeds by issuing 10,469,166 NFT Units, at the price of CDN$0.12 per NFT Unit.
All warrants issued under the Placement will be subject to an acceleration clause, whereby, if the weighted average trading price of Kivalliq’s shares on the TSX Venture Exchange (the “Exchange”) is at a price equal to or greater than CDN$0.30 for a period of 20 consecutive trading days, Kivalliq will have the right to accelerate the expiry date of the warrants. Kivalliq will give written notice to the holders of the warrants that the warrants will expire within 30 days of the date of notice to the warrant holders. Such notice by Kivalliq to the holders of the warrants may not be given until 4 months and one day after the Closing Date.
Click here to read the Kivalliq Energy Corporation (TSXV:KIV) press release
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