Kenadyr Mining (Holdings) Corp. has closed a first tranche closing of its non-brokered private placement announced Nov. 4, 2020. The company raised gross proceeds of $59,500 through the issuance of 1.19 million units priced at five cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of seven cents per share for up to three years expiring Nov. 13, 2023. The company paid no finders’ fees. All securities issued are subject to a four-month hold period expiring March 14, 2021. The net proceeds from the offering are intended to be used to finance corporate development, as well as for general corporate purposes.
Kenadyr also announces that it has agreed with certain counterparties to settle accrued accounts payables for common shares in the company. The company will settle $23,900 in accounts payable with insiders of the company with the issuance of 478,000 common shares at a deemed price of five cents per common share. The shares-for-debt transaction are subject to approval by the TSX Venture Exchange.
R. Stuart (Tookie) Angus, chairman of the company, purchased 500,000 units under the offering, which constituted a “related party transaction” within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. The issuance to the insider is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 as the fair market value of the units issued to or the consideration paid by such person did not exceed 25 per cent of the company’s market capitalization.
About Kenadyr Mining (Holdings) Corp.
Kenadyr is currently listed on the TSX Venture Exchange and its primary business is mineral exploration in the Kyrgyz Republic, specifically gold exploration in Borubai. Kenadyr holds all issued and outstanding securities in PIC Ala-Too, a Kyrgyz Republic company registered in Bishkek, which is the 100-per-cent legal and beneficial holder of an exploration licence related to Kenadyr’s Borubai project.
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