Kesselrun Resources (TSXV: KES) this morning announced that it will be raising $8.0 million via a private placement. The financing is slated to consist of both flow through and non flow through units through a non-brokered financing.
Funds raised are to be split equally between flow through and non flow through units. The financing will see the non flow through units sold at a price of $0.40 per unit, with each unit containing one common share and one half warrant. Each warrant is valid for 24 months from the date of issue, with an exercise price of $0.70 per share. It is currently expected that 10.0 million non flow through units will be sold.
Flow through units meanwhile will be sold at a price of $0.45 per unit, with 8.9 million units expected to be issued under the financing. Each unit contains one flow through common share as well as one half of a common share purchase warrant. Each warrant, similar to the non flow through units, is valid for a period of 24 months from the date of issue with an exercise price of $0.70 per share.
All warrants sold under the offering are subject to an acceleration clause. The clause enables the company to have the right to force the exercise of the warrants if the average 20 day closing price of the issuer is $1.00 or above.
A timeline for the closing of the financing was not provided.
Kesselrun Resources last traded at $0.36 on the TSX Venture.
Information for this briefing was found via Sedar and Talisker Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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