Kingfisher raising $10.6 million for B.C. projects
Kingfisher Metals Corp. [KFR-TSXV, KGFMF-OTCQB-970-FSE] said it has upsized a previously announced brokered private placement, which is now expected to raise $10.6 million. That’s up from an earlier $7.0 million target.
Kingfisher is focused on copper-gold exploration in the Golden Triangle of British Columbia. The company has quickly consolidated one of the largest land positions in the region at the contiguous 849-square kilometer Hwy. 37 project. Kingfisher also owns (100%) two district scale orogenic gold projects in B.C. that cover 641 square kilometers.
Kingfisher shares were unchanged Tuesday at 26 cents. The shares trade in a 52-week range of 32 cents and 13 cents.
Under the amended terms of the financing, the company will issue up to 7.0 million worth of non-flow-through (NFT) units priced at 25 cents per NFT unit and up to 21.3 million flow-through flow through units (the premium flow-through units) priced at 41.5 cents per FT unit.
Each NFT unit will consist of one common share and one-half of one common share purchase warrant. Each premium FT unit will consist of one common share and one half of one warrant, each of which shall qualify as a flow-through share for the purposes of the Income Tax Act (Canada).
Each warrant will entitle the holder to acquire one common share of the company at a price per warrant share of 40 cents for 36 months from the closing date, provided that, in the event that the daily volume weighted average price (or closing bid price on trading days when there are no trades) of the common shares on the TSX Venture Exchange is at least 55 cents per common share for a minimum of 20 consecutive trading days at any time after the first year anniversary of the closing date, the company may accelerate the expiry date of the warrants to a date that is not fewer than 30 days following the date of the warrant acceleration notice.
In connection with the offering, the company has granted the agent an option to sell an additional number of premium FT units at the premium FT issue price and/or NFT units at the NFT issue price for additional proceeds of $1.0 million. That option is exercisable in whole or in part at anytime up to 48 hours prior to closing which is expected to occur on June 3, 2025, subject to regulatory approvals.
An amount equal to gross proceeds from the sale of the premium FT units will be used to incur eligible Canadian exploration expenses that will qualify as flow-through critical mining expenditures as defined in the Income Tax Act (British Columbia) related to the company’s projects in B.C. on or before December 31, 2026.