Kapuskasing Gold Corp.
TSX VENTURE : KAP

November 13, 2014 08:30 ET

Kapuskasing Gold Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 13, 2014) - Kapuskasing Gold Corp. (TSX VENTURE:KAP) (the "Company" or "Kapuskasing") is arranging a non-brokered financing of up to 3,000,000 units of the Company at a price of 6.75 cents per unit for gross proceeds of $202,500. Each unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each purchase warrant will be exercisable into one common share at 10 cents for a period of 24 months from the closing of the financing. The Company is also arranging a non-brokered private placement of up to 1,666,666 flow-through ("FT") units of the Company at a price of 7.5 cents per unit for gross proceeds of $125,000. Each FT unit will consist of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one purchase warrant exercisable at 10 cents into one common share of the Company for a period of 24 months from the closing of the financing.

Net proceeds of the private placements will be used to continue the Company's exploration programs on its properties in the Borden Gold camp located in Northern Ontario and for general working capital purposes.

Completion of the offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to a statutory four-month hold period.

In connection with the private placement, Kapuskasing Gold may, subject to regulatory acceptance, pay a finder's fee to certain arm's-length parties on the proceeds raised.

Company insiders and/or their joint actors may be participating in the offering. The participation of each insider will be subject to the approval of the directors of the Company who are independent of that insider. Any such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). Since both the fair market value of the securities to be issued to insiders and the cash consideration to be paid for such securities will not exceed 25% of the Company's market capitalization, the Company anticipates that the sale of securities to insiders pursuant to the offering will be exempt from the valuation and minority shareholder approval requirements of MI 61-101.

Kapuskasing Gold controls 6 gold properties located along extensions of the Destor-Porcupine, Borden Lake and Kapuskasing structural zones. The Company's 6 properties surround Probe's discovery to the north, east, south and west. A detailed map and property descriptions can be viewed on the Company's website: www.kapgold.com.

On behalf of the Board of Directors of Kapuskasing Gold Corp.,

Dean Nawata, President & CEO, Director

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.

Forward-Looking Statements and Cautionary Notes

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kapuskasing, including, without limitation, expectations and assumptions respecting the timing and amount of the proposed financing, the outlook of exploration activity on the Borden and Rollo properties and the impact on Kapuskasing's business and management assessment of future operations. Although the forward-looking information contained in this press release is based upon what Kapuskasing's management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Kapuskasing assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.

Contact Information

  • Dean Nawata
    President & CEO, Director
    Phone 1-604-561-2821