Kapa Gold (TSX-V:KAPA) has increased its private placement to C$3 million ($3.02 million) following strong investor demand.
The company will issue 20 million units at C$0.15 cents each, with each unit comprising one common share and one transferable warrant. The warrants allow holders to purchase additional shares at C$0.25 cents within 24 months of closing.
Kapa Gold may accelerate the expiry of its warrants if its share price equals or exceeds C$0.30 cents for 20 consecutive trading days, with expiry moved to 30 days after announcing the acceleration period.
The offering is subject to TSX-V approval and is expected to close by 28 June, as well as other regulatory approvals and customary conditions.
The company will use proceeds for its next drilling program at the wholly owned Blackhawk Gold Project in Lucerne Valley, California, and for general working capital, with details of the program to come shortly.
The Blackhawk Gold Project sits in California’s historic Blackhawk mining district, known for gold and silver production, and has a recorded history of precious metal extraction.
The company has shortlisted several high-potential exploration targets within the project.
Kapa Gold is a Canadian exploration company with a portfolio of gold projects across North America, focusing on sustainable extraction using modern techniques.
Write to JC Villarba at Mining.com.au
Images: Kapa Gold
