- Scandinavian explorer Kuniko (KNI) receives binding commitments to raise $8 million through a placement
- The company will issue institutional, sophisticated and professional investors eight million new shares at $1 each
- Kuniko is also hoping to raise a further $2 million through a share purchase plan
- The funds will be used for drilling at the Skuterud cobalt project in Norway, as well as for field activities at the Ringerike and Nord Helgeland projects
- Company shares end the day 2.61 per cent in the red to close at $1.12 each
Kuniko (KNI) has received binding commitments to raise $8 million through a placement.
The company will issue institutional, sophisticated and professional investors roughly eight million new shares priced at $1 each which represents a 13 per cent discount to the last closing price and a 16.8 per cent discount to the five-day volume-weighted average price.
Kuniko said the placement garnered strong support from both new and existing shareholders, including mining investor, John Hancock, subscribing for a cornerstone investment in the placement.
CEO Antony Beckmand said he was pleased to have completed the oversubscribed placement.
“The support from these lead investors is a milestone in the growth of Kuniko, providing recognition of our strategy and asset portfolio, positioning the company to meet the increasing demand for a sustainable supply of ethically mined battery metals sourced from within the EEA in response to the electric vehicle revolution,” he said.
In addition, the materials stock will launch a share purchase plan to raise up to a further $2 million (SPP). Under the SPP, eligible shareholders will be given the opportunity to subscribe for up to $30,000 worth of shares at the same issue price as the placement.
The share purchase plan will be open from May 5 until May 27.
Kuniko will use the money for drilling, geological activities, studies and permits at its Skuterud cobalt project, field exploration at its Ringerike copper-nickel-cobalt project, and rock sampling of an unexplored pegmatite field at its Nord Helgeland technology metals project.
The funds will also assist with growth initiatives and general working capital.
Company shares ended the day 2.61 per cent in the red to close at $1.12 each.