Canadian junior exploration company KO Gold has announced plans to launch a non-brokered private placement to raise up to C$2m ($1.4m) to support the company’s exploration and drilling programmes in New Zealand’s Otago Gold District.
The company will issue up to ten million units priced at C$0.20 each, with each unit in the placement, including one common share and one warrant, which allows the purchase of an additional share at C$0.25 within two years.
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The proceeds from the private placement will also be allocated for general working capital.
Qualified parties may receive finder’s fees in cash and warrants, with the latter being issued on the same terms as the private placement. All securities issued will be subject to a statutory hold period of four months and one day.
KO Gold holds eight 100%-owned prospecting and exploration permits covering 740km² in the Otago Gold District.
In June 2024, KO Gold unveiled its drilling plans for the Otago Gold District, targeting high-grade mineralised zones.
KO Gold intends to complete reverse circulation (RC) and diamond drill-holes across several exploration permits including Carrick, Hyde, Smylers, and Glenpark.
The primary focus will be on discovering high-grade mineralised shear zones within the Carrick gold field and testing the mineralised extensions of the Hyde-Macraes Shear zone, which is adjacent to OceanaGold’s Macraes gold mine.
KO Gold is currently in the process of selecting a drilling contractor and securing the necessary drilling permits and private land access agreements.
Over the past five years, KO Gold has invested more than C$3m in exploration and drilling, including RC and diamond drilling at its Smylers permit.
