Kodiak Copper arranges bought deal, private placement
2022-03-08 16:58 ET – News Release
Ms. Claudia Tornquist reports
KODIAK ANNOUNCES BOUGHT DEAL FINANCING AND NON-BROKERED PRIVATE PLACEMENT
Kodiak Copper Corp. has entered into an agreement with Cormark Securities Inc. as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters, pursuant to which the underwriters shall purchase 3,125,000 charity flow-through common shares at a price of $2.08 per charity FT share, on a bought deal private placement basis, for aggregate gross proceeds to the company of $6.5-million. The company has granted the underwriters an option, exercisable at the offering price until the closing of the offering, to purchase up to an additional 15 per cent of the charity FT shares issued in connection with the offering.
Kodiak will also be completing a non-brokered private placement of flow-through common shares for aggregate gross proceeds of up to $500,000. The FT shares will be issued at a price of $1.92. Certain insiders of the company will participate in the private placement.
The charity FT shares and FT shares qualify as flow-through shares of the company for the purposes of the Income Tax Act (Canada). The gross proceeds from the offering and private placement will be used to incur Canadian exploration expenses which also qualify as flow-through mining expenditures (as those terms are defined in the Income Tax Act (Canada)) related to Kodiak’s projects in British Columbia. The company will renounce these expenses to the purchasers with an effective date of no later than Dec. 31, 2022.
The offering and private placement are scheduled to close on or about March 31, 2022, and are subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange. The charity FT shares and FT shares will be subject to a four-month hold period from the date of closing.
About Kodiak Copper Corp.
Kodiak is focused on its 100-per-cent-owned copper porphyry projects in Canada and the United States. The company’s most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel trough in south-central British Columbia, Canada, where the company made a discovery of high-grade mineralization within a wide mineralized envelope in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, U.S., near the world-class Bagdad mine. Kodiak’s porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
Kodiak’s founder and chairman is Chris Taylor who is well known for his gold discovery success with Great Bear Resources. Kodiak is also part of Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada.