Koryx Copper closes $46-million private placement

Executive Summary

• Koryx Copper Inc. has closed a $46 million bought deal private placement, issuing 18,776,050 common shares at $2.45 per share, inclusive of the full exercise of the underwriters' over-allotment option.
• Concurrently, the company closed a $5 million non-brokered private placement targeting Namibian investors, issuing up to 2,040,816 common shares at $2.45 per share.
• Net proceeds from both financings will be used for mineral exploration, working capital, general corporate purposes, and advancing technical studies on the Haib copper project.

Key Details

• Bought Deal Financing:
  • Gross Proceeds: $46,001,323.
  • Shares Issued: 18,776,050 common shares.
  • Price Per Share: $2.45.
  • Underwriters: Led by Stifel Canada (lead underwriter and sole bookrunner); syndicate includes Beacon Securities Ltd., Haywood Securities Inc., Research Capital Corp., Red Cloud Securities Inc., Canaccord Genuity Corp., and BMO Capital Markets.
  • Commission: 6% cash commission on gross proceeds (reduced to 2.5% on certain sales to president's list purchasers).
  • Warrants: 563,281 compensation warrants issued to underwriters (representing 3% of the number of common shares sold).
  • Warrant Terms: Each warrant entitles the holder to acquire one common share at $2.45 until January 20, 2028.
  • Regulatory Status: Completed pursuant to the listed issuer financing exemption (NI 45-106); no statutory hold period applies. Subject to final approval of the TSX Venture Exchange.
• Namibian Non-Brokered Private Placement:
  • Gross Proceeds: $5,000,000.
  • Shares Issued: Up to 2,040,816 common shares.
  • Price Per Share: $2.45.
  • Investor Base: Predominantly Namibian institutional and retail investors.
  • Finder’s Fees: Potential 3% cash commission on gross proceeds.
• Use of Proceeds:
  • Advance technical studies on the Haib copper project.
  • Continue exploration on the property.
  • Working capital and general corporate purposes.
• Company Context (Haib Project):
  • 100%-owned Haib copper project in Namibia (PEA-stage).
  • Indicated Resource: 511 million tonnes at 0.33% Cu and 51 ppm Mo (1,668,000 tonnes contained Cu, 25,900 tonnes contained Mo).
  • Inferred Resource: 308.9 million tonnes at 0.31% Cu and 40 ppm Mo (949 million tonnes contained Cu, 12,400 tonnes contained Mo).
  • Cut-off grade: 0.15% Cu.

Notable Quotes

• Heye Daun, President and CEO: "We are delighted with the very strong demand which we received from a range of highly respected international investors, which rendered this financing so significantly oversubscribed. We are particularly pleased with the strong interest received from various institutional, high-net-worth and general retail investors from Namibia. We consider it as strategically important to continue to grow our Namibian ownership base, which is why we facilitated this additional Namibian sidecar financing in addition to the Canadian bought deal."