Kalo Gold arranges share 1:4 rollback, financings

Executive Summary

• Kalo Gold Corp. announced a non-brokered private placement under the Listed Issuer Financing (LIFE) exemption to raise up to C$15.5 million in total aggregate proceeds.
• The financing consists of two concurrent tranches: an initial tranche of up to 9,687,500 units at C$0.32 per unit for C$3.1 million, and a second tranche of up to 38.75 million units at the same price for C$12.4 million.
• Proceeds will be used primarily for drilling and exploration at the Vatu Aurum project in Fiji, along with working capital and general corporate purposes.

Key Details

• Total Gross Proceeds: Up to C$15.5 million.
• Unit Price: C$0.32 per postconsolidated unit.
• Structure:
  • Tranche 1: Up to 9,687,500 units for gross proceeds of up to C$3.1 million.
  • Tranche 2: Up to 38.75 million units for gross proceeds of up to C$12.4 million.
• Securities Issued: Each unit consists of one postconsolidated common share and one-half of one postconsolidated common share purchase warrant.
• Warrant Terms:
  • Exercise Price: C$0.50 per share.
  • Term: 36 months from the date of issue.
  • Acceleration Clause: Expiry may be accelerated if the volume-weighted average trading price on the TSX Venture Exchange exceeds C$0.75 for 20 consecutive trading days; notice must be provided 30 days prior to accelerated expiry.
• Share Consolidation: A 1-for-4 postconsolidated share consolidation is required prior to closing, subject to TSX-V approval.
• Regulatory/Exemptions: Conducted under the Listed Issuer Financing (LIFE) exemption (NI 45-106).
  • Hold Period: Securities acquired by Canadian residents are not subject to a hold period, except warrants which cannot be exercised within 60 days. Concurrent offering securities are subject to a 4-month hold period.
• Use of Proceeds: Drilling and exploration on the Vatu Aurum project, working capital, marketing, and general corporate purposes.
• Finder’s Fees: The company may pay eligible arm's-length finders fees within TSX-V policy limits.

Notable Quotes

• No direct quotes from management were included in the provided text.