Orefinders Resources Inc. (TSXV: ORX) announced today that it has closed the previously announced private placement financing conducted with Kirkland Lake Gold Ltd. (TSX: KL). The transaction saw Kirkland take a 9.9% interest in Orefinders.
Orefinders issued a total of 24.4 million common shares at $0.10 per share, putting the total gross proceeds at $2.44 million. This transaction is part of the announced strategic partnership with Kirkland Lake Gold.
Under the terms of this financing, Kirkland Lake Gold has the right of first refusal for any agreement between Orefinders and third parties that concerns potential joint venture and sale or royalty agreements, as well as anti-dilution rights. Such rights remain in effect provided Kirkland Lake Gold maintains at least a 5% interest in the company.
The strategic partnership announced April 21, 2021 also includes the option to acquire a 50% interest in the Orefinders’ Mirado, McGarry, and Knight projects. Should the contingent requirements be fulfilled for this option, a joint venture will be formed that will see Kirkland acquire an additional 25% stake by incurring $50 million in expenses within the first five years of the joint venture.
Orefinders Resources Inc. last traded at $0.085 on the TSX Venture.
Information for this briefing was found via Sedar and Orefinders 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.