International Frontier Resources (TSX-V:IFR) has raised C$38 million ($38.6 million) through an equity financing linked to its proposed reverse takeover by Kinjal.
The second and final tranche generated about C$6.2 million, completing the subscription receipt placement led by Research Capital. Canaccord Genuity (TSX:CF) and ATB Capital Markets acted as syndicate agents.
The financing comprised about 40.15 million Kinjal subscription receipts and 7.35 million International Frontier subscription receipts, issued at C$0.80 each.
Each receipt will convert into one share and half a warrant if the escrow release conditions are satisfied. Each whole warrant will be exercisable at C$1.05 for 36 months following the release.
International Frontier says net proceeds are earmarked for Kinjal’s proposed acquisitions of Mexican oil and gas assets, along with working capital and general corporate purposes.
Kinjal is finalising definitive agreements for the proposed asset transactions and a debt facility with Summit Ridge Capital Partners.
Most of the financing proceeds are being held in escrow by Computershare Trust Company of Canada, a subsidiary of Computershare (ASX:CPU). The funds will be released to International Frontier as the resulting issuer once conditions are met, including completion of the reverse takeover and a 13-for-one share consolidation.
The parties must also receive the required shareholder and regulatory approvals, including conditional approval from the TSX Venture Exchange (TSX-V).
These conditions must be satisfied within 90 days of the final closing date unless the parties agree to an extension. Otherwise, the receipts will be cancelled and investors will receive their funds plus accrued interest.
A C$1.6 million investment from a strategic investor is not subject to the escrow conditions. The investor will bear the risk if the proposed asset transactions or reverse takeover are terminated.
International Frontier shareholders are scheduled to vote on the reverse takeover at an annual general and special meeting on 31 August 2026.
Closing of the final financing tranche remains subject to final TSX Venture Exchange approval, while completion of the reverse takeover is not assured.
Write to France Pinzon at Mining.com.au
Images: International Frontier Resources
