Kenorland Minerals gets strategic backing for C$16.27M placement
Participation notices and a subscription agreement would preserve three investors' stakes, with closing expected Nov. 6.
Mara Quinlan
Kenorland Minerals Ltd. CVEKLD OTCMKTSKLDCF FRA3WQ0 said on Wednesday it received strategic-investor exercise notices and a subscription commitment, making its proposed C$16.27 million placement fully subscribed. The proposed sale of 7,746,097 shares at C$2.10 would fund exploration, potential property acquisitions and working capital once completed.
Shares closed unchanged at C$1.91 on the TSX Venture Exchange at 4 p.m. EST on Nov. 3, according to CVEKLD. That close preceded Wednesday's announcement.
Kenorland said in its Nov. 4 release that Sumitomo Metal Mining Canada Ltd. gave notice to acquire 780,726 shares, maintaining its 10.1 per cent interest. Centerra Gold Inc. TSECG NYSECGAU gave notice to acquire 765,266 shares to maintain 9.9 per cent.
Franco-Nevada Corporation TSEFNV NYSEFNV provided a subscription agreement for 962,010 shares, which Kenorland said would preserve its 12.42 per cent interest. The financing remains subject to conditions, including TSX Venture Exchange approval.
The three investors' planned subscriptions total approximately C$5.27 million at the announced price. These are participation notices and a subscription commitment toward the placement, with funding still dependent on completion.
Kenorland is a Vancouver-based project generator and early-stage explorer focused on North America. Its exploration model relies primarily on partnerships, including option-to-joint-venture agreements, to advance projects through phased exploration surveys.
"As disclosed in the Offering Document, proceeds of the Financing will be utilized to fund the Company's exploration activities on its existing project portfolio, for potential future property acquisitions and for general working capital," Kenorland said in the release.
The company originally announced the non-brokered placement on Oct. 22 at C$11 million, with an over-allotment option for approximately C$5.27 million. Wednesday's total includes that option, bringing the proposed gross funding to approximately C$16.27 million.
Google Finance listed approximately 80.38 million shares outstanding for CVEKLD at 4 p.m. EST on Nov. 3. The placement would increase that rounded share count by about 9.6 per cent, with the new shares representing about 8.8 per cent of the enlarged capital.
The Nov. 4 amended offering document puts the issue price level with the Oct. 22 TSXV close, implying no discount to the pre-announcement price. Shares sold under the listed issuer financing exemption to Canadian residents are expected to be immediately freely tradeable.
Kenorland identifies Sumitomo and Franco as insiders and expects their participation to qualify for exemptions from formal valuation and minority shareholder approval requirements. The company says the subscriptions fall within the applicable threshold of 25 per cent of its market capitalization.
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Kenorland expects the placement to close on or around Nov. 6, subject to conditions and any alternative date it determines.
