Nevada King Expands Financing To $11.3 Million, Kettell To Expand Stake Significantly
Nevada King (TSXV: NKG) CEO Collin Kettell is evidently looking to reaffirm to shareholders his commitment to the company following his appointment as CEO of New Found Gold (TSXV: NFG). It was announced this morning that the company would be increasing its outstanding financing rather significantly, which is partially a result of expanded participation by Kettell.
Nevada King is now looking to raise gross proceeds of $11.3 million, up from the initial figure for the financing of $6.8 million. The financing will see the company raise funds via the sale of 25.0 million shares at a price of $0.45 per each. No warrant is included in the offering.
Insider participation under the financing is said to be significant, with approximately half of the entire financing being allocated to insiders and members of management. Kettell himself has indicated he will now acquire $4.5 million in additional shares from the company under the financing, up from an initial $2.3 million. Exploration manager Cal Herron is expected to take $0.3 million of the financing, while other members of management are taking an additional $0.3 million. Crescat Capital meanwhile will also increase their stake by $0.3 million.
Notably, Kettell prior to the financing was already a significant shareholder of the company, owning 27.9 million shares directly while also having recently acquired shares on the open market and via private transactions. That figure is set to increase by 10.0 million shares following the close of the current financing.
The financing is now said to be fully allocated, with closing expected to occur “shortly”. Following the close of the financing, Nevada King is expected to have in excess of $23.0 million in working capital. Proceeds from the financing are to be used for further exploration of the firms properties along the Battle Mountain Trend.
Nevada King Gold last traded at $0.50 on the TSX Venture.
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