TORONTO, June 15, 2017 /CNW/ - Kerr Mines Inc. ("Kerr"
or the "Company") (TSX: KER, OTCQB: KERMF, FRA: 7AZ1) announces
that it intends to complete a proposed private placement offering
of approximately 27,777,778 units of the Company ("Units")
at a price of $0.18 per Unit for
gross proceeds of $5 million (the
"Offering"). The Company will use the net proceeds
from the Offering to finance its exploration program at its
flagship Copperstone Mine in Arizona
"This financing represents the next milestone in advancing
Copperstone's development," stated Claudio Ciavarella Kerr's Chief Executive
Officer. "After our efforts to successfully complete a
significant financial restructuring last fall, dewater and
rehabilitate the Copperstone Mine earlier this year, and building
an experienced management team, we are now moving ahead with
an exploration and resource expansion program."
Each Unit of the Offering will be comprised of one common share
(a "Common Share") and one-half of one Common Share purchase
warrant (a "Warrant"), with each Warrant entitling the
holder thereof to acquire a Common Share at a price of $0.27 per share for a period of 24 months from
the date of issuance, provided, that if, at any time the Common
Shares trade on a stock exchange at a volume weighted average
trading price of CDN$0.40, or
greater, per Common Share for a period of 20 consecutive trading
days. The Company may accelerate the expiry date of the Warrants by
giving notice to the holders thereof and in such case the Warrants
will expire on the 30th day after the date on which such
notice is given by the Company..
The Offering is scheduled to close on or about June 30, 2017 and the Company may complete the
total Offering in one or more tranches. The Offering has been
conditionally approved by the Toronto Stock Exchange ("TSX")
but remains subject to final approval from the TSX.
Certain eligible persons (the "Finders") will be paid a
cash commission equal to up to 7% of the proceeds raised from
subscribers introduced to the Company by such Finder in connection
with the Offering.
The Common Shares issued pursuant to the Offering are subject to
a four month hold period in accordance with applicable securities
laws.
About Kerr Mines Inc.
Kerr Mines is a North American
gold development and exploration company currently advancing the
fully permitted past-producing Copperstone Mine project.
Copperstone is a high-grade gold project located along the Walker
Lane mineral belt in mining-friendly Arizona. The project demonstrates significant
upside exploration potential within a 12,000 acre land package
which includes a production history of over 500,000 ounces of gold.
The Company's current focus is on maximizing Copperstone's
potential by defining and expanding current resources and
strengthening the mine's economics leading to a production
decision.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements, including
current expectations on the timing of the commencement of
production and the rate of production, if commenced. These
forward-looking statements entail various risks and uncertainties
that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are
based on current expectations, are subject to a number of
uncertainties and risks, and actual results may differ materially
from those contained in such statements. These uncertainties and
risks include, but are not limited to, the strength of the Canadian
economy; the price of gold; operational, funding, and liquidity
risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; and the degree to which
factors which would make a mineral deposit commercially viable are
present; the risks and hazards associated with underground
operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in
the Company's disclosure materials, including its annual
information form and MD&A, filed with the securities regulatory
authorities in Canada and
available at www.sedar.com and readers are urged to read these
materials. Kerr Mines assumes no
obligation to update any forward-looking statement or to update the
reasons why actual results could differ from such statements unless
required by law.
Neither TSX nor its Regulation Services Provider (as that term
is defined in the policies of the TSX) accepts responsibility for
the adequacy or accuracy of this release and no stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
SOURCE Kerr Mines Inc.