Kodiak Copper Corp (TSXV: KDK) this morning announced that it has secured additional funds and a new strategic investor via a private placement conducted exclusively for Teck Resources (TSX: TECK). The major resource company will take a 9.9% interest in Kodiak, a figure just below reporting requirements.
The investment to occur totals out at $10.5 million, via the issuance of 1,038,868 common shares of the junior firm, along with 3,013,839 flow through common shares. Common shares are to be issued at a price of $1.95 per share, while the flow through shares, referred to as “charity flow-through,” will be issued at $2.82 per share, but at a cost of $1.95 per share to Teck.
In connection with the arrangement, Teck retains certain equity participation rights to maintain its position within the company should additional shares be issued of the issuer. Proceeds from the placement will be used to fund Kodiak’s MPD project and other mineral projects, along with general corporate purposes. The company has indicated that it intends to expand on the recent Gate Zone discoveries made by the company this year.
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The closing of the strategic investment is expected to occur by October 6, 2020.
Kodiak Copper Corp last traded at $1.83 on the TSX Venture.
Information for this briefing was found via Sedar, Teck Resources and Kodiak Copper Corp. 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.
