Kobo Resources Upsizes Private Placement Due to Strong Demand

Kobo Resources Inc. (TSX.V: KRI) announced that, due to strong investor demand, it has upsized its previously announced non-brokered private placement of units (the “Offering”) and concurrent brokered private placement of units (the “Concurrent Financing”).

Due to strong investor interest, we are pleased to announce an increase in the size of our previously announced private placement. The additional funding will enable our team to implement further exploration initiatives at the Kossou Gold Project in 2024, including extending the known mineralization at our three main targets: the Road Cut Zone, Jagger Zone, and Kadie Zone. Additionally, we look forward to initiating early-stage exploration efforts at our Kotobi Research Permit, which covers approximately 302 km2 and is also underlain by Birimian Group rocks. Our 2024 diamond drilling program continues to progress as planned, and we remain optimistic about the future, including with the support of Luso Global Mining.Edward Gosselin, CEO & Director of Kobo Resources Inc.

The upsized Offering is for up to 14,285,714 units of the Company (the “Units”) at a price of $0.35 per Unit for gross proceeds of up to approximately $5.0 million, increased from the previously announced 12,857,143 Units for gross proceeds of up to $4.5 million.

The upsized Concurrent Financing is for up to 8,571,430 additional Units of the Company (the “Additional Units” and together with the Units, the “Offered Units”) at a price of $0.35 per Additional Unit for additional gross proceeds of up to approximately $3.0 million, increased from the previously announced 7,142,857 Additional Units for gross proceeds of up to $2.5 million.

The Units will be issued pursuant to the “accredited investor” or another exemption (other than the listed issuer financing exemption) from the prospectus requirements in accordance with National Instrument 45-106 – Prospectus Exemptions (or, in Québec, Regulation 45-106 respecting Prospectus Exemptions) (“NI 45-106”). The Additional Units will be issued pursuant to the listed issuer financing exemption available under Part 5A of NI 45-106.

Each Offered Unit is to be comprised of one Common Share and one-half of one common share purchase warrant (each whole common share purchase warrant (“Warrant”). Each whole Warrant will entitle its holder to acquire one Common Share at a price of $0.55 per share for a period of 24 months from the closing of the Offering. The securities issued under the Offering will be subject to a statutory hold period in accordance with applicable Canadian securities laws and the securities issued under the Concurrent Financing will not be subject to a hold period in accordance with applicable Canadian securities laws.

The Offering and the Concurrent Financing together are subject to the receipt by the Company of a minimum of $2,500,000 in gross proceeds (the “Minimum Offering Proceeds”) from either the Offering or a combination of both the Offering and the Concurrent Financing.

The Company intends to use the net proceeds of the Offering and the Concurrent Financing to expand its 2024 diamond drill program on its Kossou exploration permit, initiate a soil geochemical survey and a geological exploration program on the Kotobi research permit and for general corporate and working capital purposes.
Leede Jones Gables Inc. will act as agent in connection with the Concurrent Financing.

Closing of the Offering and the Concurrent Financing may occur in one or more closings with the first closing expected to occur on or about June 4, 2024 and the final closing to occur no later than July 2, 2024 (the “Closing”), and are subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the receipt of the Minimum Offering Proceeds.

The Company anticipates that certain “related parties” of the Company will participate in the Offering.

The participation in the Offering of such “related parties” will constitute a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

The Company expects that the Offering will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to the related parties nor the consideration being paid by related parties will exceed 25% of the Company’s market capitalization.

Kobo Resources is a Marketing Awareness Client of Capital 10X. See disclosures for more information.

Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing have appeared in publications for North American, European and Asian audiences.

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