KO Gold closes $1.98-million first tranche of financing

Executive Summary

• KO Gold Inc. has closed the first tranche of its non-brokered private placement, raising approximately $1.98 million in gross proceeds.
• The company is currently seeking shareholder approval for the second tranche, which is required because the total issuance exceeds 100% of the company's fully diluted share count.
• Net proceeds will be used for general working capital and to fund exploration and drilling programs in the Otago gold district, New Zealand.

Key Details

• First Tranche Closing: Closed for aggregate gross proceeds of $1,980,475.35.
• Units Issued: 13,203,169 units issued at a price of $0.15 per unit.
• Warrant Terms (Units): Each unit includes one common share purchase warrant, entitling the holder to acquire one additional share at an exercise price of $0.25 for a period of three years from issuance.
• Second Tranche Status: Completion is subject to shareholder approval under Canadian Securities Exchange (CSE) policies due to the issuance exceeding 100% of issued and outstanding common shares on a fully diluted basis.
• Approval Process: The company is obtaining shareholder approval via written consent of shareholders holding a majority of outstanding common shares.
• Total Financing Size: The total private placement is for aggregate gross proceeds of up to approximately $2,439,030, assuming completion of all tranches.
• Use of Proceeds: General working capital and financing continuing exploration and drilling programs in the Otago gold district, New Zealand.
• Finder’s Fees: Paid $28,735 in cash and issued 191,567 finders' warrants to certain qualified parties.
• Finder’s Warrant Terms: Exercisable to acquire one common share at an exercise price of $0.25 for a period of three years from issuance (same terms as unit warrants).
• Statutory Hold Period: All securities issued in the first tranche are subject to a statutory hold period expiring on May 15, 2026.