King Copper Discovery Corp. Completes Financing
King Copper Discovery Corp. (TSXV: KCP) is excited to share the successful completion of its non-brokered private placement offering, generating approximately $15 million. This financing involved the issuance of 65,217,390 common shares at a price of $0.23 per share. The decision to secure these funds was strategic, allowing the company to further its exploration efforts in its flagship Colquemayo copper-gold project.
Utilization of the Proceeds from Financing
The net proceeds from this substantial financing will be directed towards ongoing exploration activities, including diamond drilling at the Colquemayo project. Additionally, some of the funds will be allocated for working capital, enhancing the company’s ability to grow and innovate.
Strategic Investor Involvement
A key strategic investor participated in this financing round, acquiring a 9.99% interest in King Copper. An investor rights agreement has been established, granting this investor specific privileges such as participation in future equity financings and the potential to maintain their ownership percentage in the company in scenarios of dilution. This kind of partnership is pivotal, as it reinforces the company’s capital base and commitment to growth.
Insider Participation in the Financing
Among the participants in this financing were company insiders, including a director and an officer-controlled corporate subscriber. Together, they purchased 300,000 shares, raising $69,000 for King Copper. Given that these transactions involve insiders, the company is following regulations outlined in Multilateral Instrument 61-101, ensuring fair practices are upheld, particularly as the shares acquired do not exceed 25% of the company's market capitalization.
Future Projections and Regulations
All securities issued as part of this financing are subject to a statutory hold period that will last four months plus a day from their issuance, concluding on January 16, the following year. This practice adheres to applicable securities legislation, ensuring compliance and transparency.
Advisory and Guidance
King Copper engaged Eventus Capital Corp. as advisors for this financing endeavor, showcasing their commitment to professional guidance throughout the process. Their support is invaluable as King Copper navigates the complexities of financial growth and exploration.
About King Copper Discovery Corp.
King Copper is a TSXV-listed company that focuses on the Colquemayo gold-copper project, situated in South America. This exploration company is driven by a capable team known for several notable discoveries in the gold-copper-silver sector. The execution of this financing solidifies their position and lays a robust foundation for future project advancement.
Frequently Asked Questions
What is the total amount raised in the financing?
The total amount raised in the financing is approximately $15 million.
What are the main uses of the proceeds from the financing?
The proceeds will primarily be used for advancing exploration activities, specifically diamond drilling at the Colquemayo project, alongside necessary working capital.
Who are the key investors in this financing?
A strategic investor has acquired a 9.99% ownership interest, and there were also participates from company insiders, including a director and an officer-controlled entity.
What is the statutory hold period for the issued securities?
All securities issued are under a statutory hold period of four months plus a day, expiring on January 16 of the following year.
Who advised King Copper during this financing?
Eventus Capital Corp. acted as an advisor to King Copper throughout the financing process.
