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Kapa Gold INC. (TSXV: KAPA,OTC:KPGLF) ("Kapa" or the "Company") is pleased to announce as a result of strong investor demand, the Company has increased the size of its previously announced non-brokered private placement for gross proceeds of up to CAD$3,000,000 (the "Private Placement" or "Offering").
The Private Placement will consist of the issuance of 20,000,000 units (the "Units") at a subscription price of CAD$0.15 per Unit. Each Unit will be comprised of one common share of the Company (a "Share") and one transferable common share purchase warrant (a "Warrant"). Each Warrant will be exercisable to purchase an additional Share of the Company at an exercise price of CAD$0.25 for a period of 24 months from the closing date ("Closing Date").
Pursuant to the terms of the Warrants, the Company may accelerate the expiry date of the Warrants if the closing price of the Company's common shares on the TSX Venture Exchange (the "TSXV") equals or exceeds C$0.30 for a period of 20 consecutive trading days (the "Acceleration Period") to the date which is 30 days following the dissemination of a news release announcing the Acceleration Period (the "Warrant Acceleration").
The proceeds from the Offering will be used for the Company's next drill program at its 100% owned Blackhawk Gold property, Lucerne Valley, California and general working capital requirements. Details of the drill program will be announced in a future press release to follow soon. Insiders of the Company will also subscribe for Units under the Private Placement. All securities issued in connection with the Private Placement will be subject to a statutory hold period of 4 months plus a day from the Closing Date in accordance with applicable securities legislation. Finder's fees may be paid in connection with this Offering. Closing of the Private Placement is subject to the approval of the TSXV.
The Offering is expected to close on or before June 28, 2026 subject to regulatory approvals and customary closing conditions.
About Blackhawk Gold Project
Blackhawk Gold Project is located in the historic Blackhawk Mining District in California, a region renowned for its gold and silver production. The mine has a long history of precious metal extraction, with several high-potential exploration targets identified. Kapa Gold is focusing on establishing a resource and developing a sustainable extraction strategy using modern techniques.
About Kapa Gold
Kapa Gold Inc. is a Canadian exploration company focused on advancing its portfolio of high-potential gold projects in North America. The Company's flagship project, the Blackhawk Gold Property, aims to deliver significant shareholder value through strategic exploration and development initiatives. Kapa Gold is dedicated to responsible mining, sustainable growth, and contributing positively to the communities in which it operates.
To learn more, visit www.kapagold.com
On behalf of the Board of Directors
Kapa Gold INC.
"David K. Paxton"
CEO and Director
For More Information, Contact:
Konstantine Tsakumis
kon@kapagold.com
604-961-9442
THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
Certain statements made, and information contained herein may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guaranteeing of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299491
