Kodiak Copper closes $12.7 million private placement
8 October 2020
Kodiak Copper Corp. is pleased to announce that it has closed its non-brokered private placement previously announced September 14, 2020, for gross proceeds of C$12,677,479.
In connection with the Placement, the Company has issued 3,739,316 flow-through common shares of the Company placed through a charity flow-through arrangement consisting of 2,786,666 at a price of C$2.88 per share and 952,650 at a price of C$2.78. The Company also issued 1,027,443 common shares of the Company at a price of C$1.95 per share.
Teck Resources Limited (“Teck”), who participated in the financing, now owns 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.
Proceeds of the Placement will be used to fund the Company’s exploration programs on its wholly owned, advanced-stage copper porphyry exploration projects in British Columbia and Arizona, and for general corporate purposes. The Company is now fully funded for its exploration and drill programs at the MPD project in Southern BC for the balance of 2020 and into 2021. Kodiak intends to follow up on the recent high-grade Gate Zone copper-gold discovery and test other porphyry targets across the property.
In connection with the closing of the Placement the Company paid finders’ fees of $21,157 to eligible parties who introduced subscribers to the Placement. All securities issued in connection with the private Placement are subject to a four-month-and-one-day statutory hold period from the date of issue, expiring on February 8, 2021.