Kaminak Gold Closes C$22.5 Million Financing

Kaminak Gold (TSXV:KAM) closed its previously announced private placement with Electrum Strategic Opportunities fund, and with its existing large shareholders including Ross Beaty and Zebra Holdings.
As quoted in the press release:

The Company agreed to use the net proceeds of the Offering to continue exploration and development of Kaminak’s Coffee Gold Project in Yukon and for general corporate purposes.
In connection with the Offering, Electrum acquired 12,195,122 Units which represents, on a partially diluted basis assuming the exercise of all Unit Warrants acquired by Electrum, a 10.32% equity interest in the Company.
Pursuant to the terms of the unit purchase agreement dated October 29, 2015 between the Company and Electrum, Electrum is entitled to nominate one person to the Company’s board of directors and to participate in any future proposed equity offering of the Company in order to maintain its pro rata shareholding, subject to certain exceptions. These rights can only be exercised by Electrum while it owns greater than 5% of the issued and outstanding Class A common shares of the Company.
Each Unit issued in the private placement consists of one Class A common share in the capital of the Company (a “Unit Share“) and one-half of one Class A common share purchase warrant (each whole common share purchase warrant, a “Unit Warrant“). Each Unit Warrant entitles the holder thereof to purchase one additional Class A common share at a price of C$1.05 for a period of 2 years following the closing of the Offering. In the event that following four months and one day after the closing date, the volume weighted average trading price of the Company’s Class A common shares on the TSX Venture Exchange for a period of 10 consecutive trading days exceeds C$1.35, the Company may accelerate the expiry date of the Unit Warrants.

Click here for the full press release.