Kinross Gold (TSX: K) is set to take a 9.9% interest in a small Nevada-focused gold explorer. The arrangement will see the company participate in a financing being conducted by Eminent Gold (TSXV: EMNT), with Kinross to serve as the lead order.
The arrangement is part of a larger financing, wherein Eminent intends to raise gross proceeds of up to $5.0 million via the sale of 12.5 million units at a price of $0.40 per unit. Each unit contains one share and one half of a common share purchase warrant. Warrants issued under the offering are slated to have a two year expiry and an exercise price of $0.70 per share.
As part of the investment, Kinross will have the right to participate in future equity issues to maintain its interest, alongside top-up rights. The company will also retain the right to increase its interest in Eminent to 19.9% of the outstanding shares on a partially diluted basis, in which case they would also be eligible to nominate one member to the board of directors.
As part of the investment, Kinross will also form a technical advisory committee with Eminent in relation to Eminent’s Hot Springs Range and Celts projects.
For Kinross, the draw to the arrangement is evidently Eminent’s Hot Springs project, which is found near to several claims and mines operated by Nevada Gold Mines, the joint venture between Barrick Gold and Newmont. The Celts project meanwhile is contiguous to certain claims held by Barrick near-to the Goldfield district.
Funding from Kinross’ investment, as well as the larger financing, are said to be slated for drilling a cumulative 1,750 metres at the Hot Springs Range and Celts projects, alongside payment of property holding costs and general working capital.
Kinross last traded at $16.75 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. 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.
