KORE Mining Accelerates Exploration With Closing of the First Tranche of the $7.5 Million Strategic Investment With Eric Sprott
PR Newswire•July 22, 2020
VANCOUVER, BC, July 22, 2020 /PRNewswire/ - KORE Mining Ltd. (TSXV: KORE) (OTCQB: KOREF) ("KORE" or the "Company") is pleased to announce the closing of the first tranche of the previously announced $7,500,000 non-brokered private placement consisting of 6,000,000 units at a price of $1.00 per unit ("Non-FT Units") and 1,000,000 units of flow through units at $1.50 ("FT Units") (collectively, the "Private Placement"). The first tranche, which closed today, consists of the 6,000,000 Non-FT Units for gross proceeds of $6,000,000, with the second tranche of the financing expected to close on or before July 29, 2020.
Scott Trebilcock, President and CEO stated, "We are already putting Eric's funding to work. At FG Gold in BC we have mobilized soil sampling on 10 kilometres of un-explored strike and have extended drilling with a planned 5,000 additional meters. At Imperial regional exploration soils and geophysics targeting work is underway in parallel with permitting the follow-on drill programs at Imperial and Long Valley. KORE's objective is to be continuously drilling across our portfolio for the foreseeable future."
Eric Sprott commented, "KORE owns 100% of three district scale gold projects, all with shallow high-quality drill targets. With this financing, the Imperial PEA and the resources in the ground to back-stop value, KORE is set up to deliver out-sized returns and I have positioned myself as their largest shareholder."
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, purchased 6,000,000 Non-FT Units for total consideration of $6,000,000. Prior to the close of this first tranche of the Private Placement, Mr. Sprott beneficially owned and controlled 20,318,444 Shares, representing approximately 20.7% of the outstanding shares. Mr. Sprott now beneficially owns and controls 26,318,444 shares and 3,000,000 warrants, representing approximately 25.3% of the outstanding shares and 27.4% on a partially diluted basis assuming exercise of the warrants.
The Non-FT Units were acquired by Mr. Sprott, through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of KORE including on the open market or through private acquisitions or sell securities of KORE, including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
A copy of 2176423 Ontario's early warning report will appear on KORE's profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Sprott's office (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1). All securities to be issued pursuant to the Private Placement are subject to a four month hold period and for the securities issued under the first tranche, will expire on November 23, 2020.
The participation of Mr. Sprott as a subscriber in the Private Placement is