VANCOUVER, BC, January 12, 2022 /CNW/ – Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) (“KRL” or the “Company”), the Asia Pacific specializing in gold mining, is pleased to announce an increase in its previously announced private placement financing (the “Offering”) due to oversubscription. The Offer was initially announced on December 1, 2021, to raise gross proceeds of up to 1.5 million Canadian dollars (which detailed the relevant financing terms), and, due to oversubscriptions, the Offering was subsequently increased to generate gross proceeds of up to 2 million Canadian dollars as announced on January 4, 2022, and has now been expanded to increase the total gross product of 2.7 million Canadian dollars.

Product use

The net proceeds of the Offering are intended to be used for, but not limited to, exploration programs at KRL North and KRL South leading to drill target delineation, sampling and technical reporting for the May River project, and for general working capital purposes.

Other terms of the agreement

All terms of the Offer remain the same, provided that the Company intends to issue up to an aggregate of 15,000,000 units of the Company (each, a “Unit”) at a price of CA$0.18 per unit for aggregate gross proceeds of up to 2.7 million Canadian dollars as part of the complete offer. Each Unit will consist of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”), each Warrant being exercisable for one common share at an exercise price of CA$0.36 per common share at any time up to 36 months after the closing date of the offering, subject to earlier expiry in certain circumstances.

The Company closed the first tranche of the Offering on January 4, 2022. Under the first tranche of the Offering, the Company issued a total of 9,268,825 Units to raise gross proceeds of a total of C$1,668,388.

A second and final tranche of the Offer of a maximum of approximately 1 million Canadian dollars should close on or before January 24, 2022.

Completion of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary regulatory approvals, including acceptance by the TSX Venture Exchange (“TSX-V”).

In connection with the Offer, the Company may pay finder’s fees to certain intermediaries, which fees would be a cash payment equal to 6% of the gross proceeds raised by the buyers presented by such intermediaries, and the issuance of warrants non-transferable subscription warrants equal to 6% of the number of units purchased by purchasers presented by such contributors (each, a “Compensation Warrant”). Each of these compensation warrants will be exercisable for one common share at an exercise price of CA$0.36 per Common Share at any time prior to up to 36 months after the closing date of the Offering and will be issued on substantially the same terms and conditions as the Warrants, except that the Compensating Warrants will not be subject to a termination clause. ‘acceleration.

All securities issued in connection with the Offering and in payment of any finder’s fee, including Common Shares issuable upon the exercise of Warrants or Compensating Warrants, if any, will be subject to a holding period of four months and one day after the closing date of the Offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Units, and there will be no sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction. The Offered Units will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in United States or to, or for the account or benefit of, a US Person.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

About KRL

KRL is a Asia Pacific Focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu gold district in PNG. Both KRL projects have the potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district. KRL has a highly experienced board and management team with a proven track record of collaboration across the region; and a partner established in the country.

For more information, please visit https://kainanturesources.com/

Disclaimer and Forward-Looking Information

Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainties affecting KRL’s business. In making these forward-looking statements, KRL has applied certain assumptions based on available information, including KRL’s short- and medium-term strategic plan. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. KRL does not undertake to update forward-looking information except in accordance with applicable securities laws.

Certain of the statements made and information provided in this press release are forward-looking information within the meaning of applicable Canadian securities laws. Often, such forward-looking information can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “continues”, “expected”, “planned”, “estimates”. ”, “plans”, “intends”, “anticipates” or “believes” or negative forms thereof or variations of such words and phrases or statements that certain actions, events or results “might”, “could”, “could”, “could” or “will” be taken, occur or be carried out.

Forward-looking information in this release includes, but is not limited to, statements or information regarding: the offer, the company’s ability to close the offer and the use of proceeds from the offer.

Forward-looking information, by its nature, is based on assumptions and involves known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

We have made certain assumptions regarding the forward-looking information. Although our management believes that the assumptions made and expectations represented by such information are reasonable, there can be no assurance that any forward-looking statements or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those described in the forward-looking statements or information. These risks, uncertainties and other factors include, among others: global infectious disease outbreaks, including COVID-19; geopolitical and economic climate (global and local), risks related to tenure and mining permits; commodity price volatility; IT system risks; the continued softening of the global market; risks regarding potential and pending litigation and arbitration proceedings related to our business, properties and operations; mining exploitation and development risk; funding risks; operational risks related to foreign countries; sovereign investment risks; regulatory risks and liabilities, including environmental regulatory restrictions and liabilities; mineral reserves and resources and metallurgical testing and recoveries; additional financing needs; currency fluctuations; the actions of communities and non-governmental organizations; speculative nature of exploration; dilution; stock price volatility and the price of our common stock; competetion; the loss of key employees; and defective title to claims or mineral properties, together with the risk factors discussed in the sections entitled “Forward-Looking Information” and “Risk Factors” in the Company’s Filing Statement dated October 28, 2020. Readers are urged to carefully review the detailed discussion of risks in our registration statement filed on SEDAR under our company name, which discussion is incorporated by reference into this release, for a better understanding of the risks and uncertainties that affect the business and operations of the company.

There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on any forward-looking information contained herein. Except as required by law, we do not plan to continually update forward-looking statements and information as conditions change.

SOURCE Kanantu Resources Ltd.

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Michael J. Birnbaum