Kilo Goldmines Announces Proposed Non-Brokered Private Placement
TORONTO, ONTARIO--(Marketwired - Nov. 19, 2015) -
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Kilo Goldmines Ltd. (TSX VENTURE:KGL) (FRANKFURT:02K) ("Kilo" or the "Company") announced today that it intends to proceed with a non-brokered private placement of equity units ("Units") to raise gross proceeds of C$2,002,000, to a maximum of C$3,003,000, (the "Offering"). The Units will be offered at a price of C$ 0.07 per Unit and each Unit will consist of one common share and one non-transferable common share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder to acquire one additional common share of the Company for two years at a price of C$ 0.095. Kilo has been advised that a fund managed by one of the Sprott Group of Companies intends to subscribe for Units in the Offering.
The Company will use the net proceeds from the offering for working capital and general corporate purposes, and to maintain its Somituri gold property in the Democratic Republic of Congo.
The Company will pay finder's fees to registered dealers in connection with the Offering of 7.0% in cash and 5.0% in finders' warrants, each finder's warrant exercisable to acquire one common share of the Company at a price of C$ 0.07 per share for two years.
Insiders of the Company may subscribe for up to 75% of the Offering.
The private placement is subject to all necessary regulatory approvals, including approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four month restricted resale period.
About Kilo
Kilo Goldmines Ltd. (KGL) is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. KGL holds exploitation and exploration licences covering some 2,417 km2 of favourable Archaen Kabalian Greenstones (the Ngayu belt) in the northeast Democratic Republic of Congo an area historically referred to as the Kilo-Moto region, a historic gold-producing region.
Incorporated within these licences is:
- the Somituri project (71.25% owned by KGL), comprising six non-contiguous licences (361 km2) held by KGL-Somituri SARL; and
- the KGL Isiro SARL Joint Venture (JV) with Randgold Resources Ltd. (2,056 km2), for gold and associated minerals only. The JV is managed by Randgold and financed by it to a pre-feasibility (PFS) for a 51% participation interest. Upon completion of the PFS, KGL can participate in funding or Randgold will increase its participation to 65% by completing a Feasibility Study. Areas which may be deemed of no interest to Randgold will be returned to KGL.
In addition, KGL has retained the rights to explore for and develop iron ore resources and other minerals associated with the licences held by KGL Isiro SARL.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
Contact
Kilo Goldmines Ltd.
Philip Gibbs
Interim CEO
+1 416 360 3406
philip.gibbs@kilogoldmines.com
www.kilogoldmines.com