King Copper closes $15-million private placement

Executive Summary

• King Copper Discovery Corp. has closed a non-brokered private placement financing, raising $15 million in gross proceeds.
• The company issued 25 million units at a price of $0.60 per unit, with each unit comprising one common share and one common share purchase warrant.
• The net proceeds are designated for general working capital and the assessment of copper exploration and development opportunities in South America.

Key Details

• Transaction Structure: Non-brokered private placement.
• Units Issued: 25,000,000 units.
• Price Per Unit: $0.60 CAD.
• Gross Proceeds: $15,000,000.
• Warrant Terms: Each unit includes one common share purchase warrant exercisable at $0.98 per share for a period of two years.
• Hold Period: All securities are subject to a statutory four-month hold period.
• Insider Participation: A director and a corporate entity controlled by a director subscribed for 150,000 units, totaling $90,000 in gross proceeds. This constitutes a related-party transaction under Multilateral Instrument 61-101.
• Regulatory Exemption: The company relied on exemptions from formal valuation and minority approval requirements under subsections 5.5(a) and 5.7(1)(a) of MI 61-101, as the insider subscription value did not exceed 25% of the company's market capitalization.
• Use of Proceeds: General working capital and continuing assessment/evaluation of multiple copper exploration and development opportunities within South America.