Kodiak announces $10.5 Million financing with Teck
Kodiak Copper Corp. [KDK-TSXV] announced that Teck Resources Ltd. [TECK.B, TECK.A-TSX; TECK-NYSE] has agreed to make a strategic investment in the company by way of a private placement.
Kodiak strengthens its shareholder register by adding Teck, Canada’s largest diversified resource company, with a 9.9% interest
The investment will provide Kodiak with capital to fund Kodiak’s ongoing work program at its 100%-owned MPD copper-gold porphyry project in southern British Columbia, including an expanded drill program.
Claudia Tornquist, President and CEO of Kodiak said, “Kodiak is delighted to welcome Teck as a shareholder. We view Teck’s investment as a strong endorsement of the MPD Project and Kodiak’s management. With the proceeds of this private placement we will be able to expand on the momentum of our recent Gate Zone discoveries, and test other porphyry targets across the MPD property through 2020 and 2021.”
The placement will consist of 1,038,868 common shares of Kodiak at C$1.95 per share and an additional 3,013,839 flow-through common shares are expected to be placed through a charity flow-through arrangement at an average price of C$2.82 per share, (a cost to Teck of C$1.95 per share), for total gross proceeds of approximately C$10.5 million. Following the placement, Teck will own approximately 9.9% of the issued and outstanding common shares of Kodiak on a non-diluted basis.
In connection with the Placement, Kodiak has agreed to grant Teck an equity participation right to maintain its pro-rata ownership in the company.
Closing of the private placement is expected to occur by October 6, 2020. Closing is subject to negotiation and execution of definitive documentation and regulatory approvals.
Kodiak is focused on its 100%-owned copper porphyry projects in Canada and the USA. 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 in 2020. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, USA.