KGL Resources Announces New Controlling Shareholder and CEO and Proposed Private Placement

Executive Summary

• Arnold Kondrat acquired ~60% of KGL Resources and was appointed President & CEO, effecting a change of control.
• The company announced a non‑brokered private placement of up to 10 million common shares at C$0.075 per share, targeting gross proceeds of up to C$750,000.
• Proceeds are earmarked for debt extinguishment, reporting/compliance costs, acquisition/search activities and general working capital; the transaction may involve related‑party participation subject to MI 61‑101 exemptions.

Key Details

• Acquisition: Kondrat purchased 8,857,142 common shares (≈60.23% of outstanding) in a private transaction.
• Leadership Change: Kondrat appointed President & CEO; former CEO Donat Madilo remains CFO, Secretary and director. Directors Nili Stolarsky and Philip Chen continue on the board.
• Private Placement Terms:
• Up to 10,000,000 common shares
• Price: C$0.075 per share
• Gross proceeds target: up to C$750,000
• Hold period: minimum 4 months (longer if required by securities law)
• Use of Proceeds:
• Extinguish existing indebtedness
• Fund public company reporting and compliance expenses
• Finance search for, investigation of, and potential acquisition/merger targets
• Working capital and general corporate purposes
• Related‑Party Considerations: If insiders participate, the transaction will be treated as a “related party transaction” under MI 61‑101 and TSX Venture Exchange Policy 5.9; the company intends to rely on financial hardship valuation and minority‑approval exemptions.
• Financial Position (as of Sep 30 2025, audited):
• Cash resources: C$454
• Current liabilities: C$436,197
• Working capital deficiency: C$431,294
• Regulatory Requirements: Subject to NEX Board approval and other required securities‑law approvals.

Notable Quotes

(No direct quotes were provided in the release.)