The mining newspaper for Alaska and Canada's North

Electrum to buy a major stake in Kaminak

Kaminak Gold Corp. Sept. 28 reported that it intends to raise C$22.5 million in a non-brokered private placement to Electrum Strategic Opportunities Fund L.P., Ross Beaty and Zebra Holdings and Investments S.à.r.l., Luxembourg.

Beaty and Zebra Holdings each currently own a 7.33 percent interest in Kaminak.

Kaminak's financing involves the issuance of 27,439,024 units, made up of one company share and half a purchase warrant, at a price of C82 cents per unit.

Each whole warrant will entitle the holder to purchase one common share at a price of C$1.05 for two years, subject to an early expiry option.

Assuming the exercise of all unit warrants acquired by the subscribers, Electrum will own a 10.32 percent equity interest in Kaminak.

Following the closing of the private placement, Electrum will have the right to nominate one person to Kaminak's board of directors and a right to participate in any future proposed equity offering of the company in order to maintain its pro rata shareholding, subject to certain exceptions.

Kaminak President and CEO Eira Thomas said, "Kaminak is very pleased to be welcoming Electrum as a significant new shareholder in conjunction with a financing that renews and builds upon the support of our existing strong shareholder base.

These funds ensure that our Coffee Gold Project stays on the fast track right through to construction, targeted for 2018, in support of Kaminak's larger goal of becoming a Yukon gold producer by 2019."

Author Bio

Shane Lasley, Publisher

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Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.


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