- MinKap Resources (KAP) has raised just under C$750,000 in a private placement to fund work at its Breccia Gold property in Idaho, USA
- The company issued just under 10 million units at a price of 7.5 cents each, comprised of one common share and one common share purchase warrant
- Each warrant will be exercisable at a price of 15 cents for a period of 24 months from the date of issuance
- The Breccia Gold property is currently held under an option agreement with Canarc Resources and DG Resource Management
- MinKap Resources (KAP) is currently down 10.81 per cent and is trading at $0.16 per share
MinKap Resources (KAP) has raised just under C$750,000 in a private placement to fund work at its Breccia Gold property in Idaho, USA.
Under the terms of the placement, the Toronto-based company issued a total of 9,999,998 units at a price of 7.5 cents each. These units are comprised of one common share in MinKap Resources and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional common share in the company at a price of $0.15, exercisable over a period of 24 months from the date of issuance.
The proceeds will be used to fund exploration and development work at MinKap Resources’ Breccia Gold property and the contiguous Lightening Tree property – collectively known as the Breccia Gold property – as well as for general corporate purposes.
Pursuant to an agreement with Canarc Resources and DG Resource Management, MinKap Resources has an option to acquire a 100 per cent interest in the Breccia Gold property.
As consideration for the acquisition, the company will be required to issue 2.5 million common shares and 2.5 million common share purchase warrants to both Canarc Resources and DG Resource Management, as well as a cash payment of $275,000 to be made over a three-year period.
The company will also be required to assume a total of $4 million in exploration expenses within three years of receiving drill permits for the properties.
In addition, DG Resource Management will retain a 2.5 per cent net smelter return on the Breccia Gold property, while Carnac Resources will retain a 2.5 per cent royalty on Lightening Tree. MinKap Resources may purchase one per cent of these royalties by making a $1 million payment for each.
MinKap Resources (KAP) is currently down 10.81 per cent to $0.16 per share at 3:12pm EDT.