Net proceeds of the Private Placement are expected to fund work on KORE's 100% owned gold portfolio: Long Valley(California), Gold Creek (BC) and FG Gold (BC), as well as for general working capital purpose
KORE Mining Ltd. (“KORE” or the “Company”) is pleased to announce the closing of the $3,000,000 non-brokered private placement with Mr. Eric Sprott through 2176423 Ontario Ltd. (a company which he beneficially owns) consisting of 10,000,000 common shares at a price of $0.30 per share (the “Private Placement”), announced August 16, 2019.
Scott Trebilcock, President and CEO stated “In an environment with an increasing gold price, KORE and other under-valued gold resources have strong leverage to the gold price and can outperform it by many multiplies. Eric Sprott’sinvestment indicates the start of such a market. KORE Management and Directors, who collectively own 46% of KORE’s undiluted shares are pleased to welcome Eric as the third largest shareholder.”
Mr. Eric Sprott owns 11.3% of KORE’s undiluted shares. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Net proceeds of the Private Placement are expected to fund work on KORE’s 100% owned gold portfolio: Long Valley(California), Gold Creek (BC) and FG Gold (BC), as well as for general working capital purposes. In addition, in May 2019, KORE raised $4 million from Macquarie Bank Ltd. to advance permitting of the Imperial oxide gold project in California.
Mr. Sprott acquired the common shares for investment purposes. A copy of 2176423 Ontario Ltd.’s early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1). All securities to be issued pursuant to the Private Placement are subject to a four month hold period.
KORE has paid a finders fee to Richardson GMP Ltd. in the amount of $60,000 in connection with the Private Placement.
Source: Company Press Release