/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 14, 2022 /CNW/ - Karora Resources Inc. (TSX:
KRR) (OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased
to announce that it has closed its previously announced bought deal
financing of 14,375,000 common shares of the Corporation (the
"Common Shares"), at a price of $4.80
per Common Share (the "Issue Price"), for gross proceeds to the
Corporation of $69,000,000 (the
"Offering"), including the exercise in full of the Underwriters'
over-allotment option. The Offering was underwritten on a "bought
deal" basis by a syndicate of underwriters, co-led by Haywood
Securities Inc., as co-lead underwriter and sole bookrunner, and
Cormark Securities Inc., as co-lead underwriter, and including
Canaccord Genuity Corp., Desjardins Securities Inc., Red Cloud
Securities Inc., and Stifel Nicolaus Canada Inc. (collectively, the
"Underwriters").
The Corporation intends to use the net proceeds received from
the Offering to fund a portion of the cash consideration due at a
closing of the Lakewood Mill acquisition as further described in
the Corporation's news release dated May 24,
2022 (which transaction is subject to the satisfactory
completion by the Corporation of its due diligence and other
applicable closing conditions), advancement of the Corporation's
nickel exploration and development program its Beta Hunt Mine, and
for working capital and general corporate purposes.
The Corporation filed a final short form prospectus (the
"Prospectus") in all of the provinces of Canada, except Québec, pursuant to National
Instrument 44-101 – Short Form Prospectus Distributions to
qualify for distribution of the Common Shares offered pursuant to
the Offering. Copies of the Prospectus and documents incorporated
by reference therein are available electronically on SEDAR
(www.sedar.com) under Karora's issuer profile.
The securities offered in the Offering have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, expanding to a
planned 2.5 Mtpa by 2024, which is fed at capacity from Karora's
underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a
robust gold Mineral Resource and Reserve are hosted in multiple
gold shears, with gold intersections along a 4 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. The Corporation
also owns the high grade Spargos Reward project, which came into
production in 2021. Karora has a strong Board and management team
focused on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to the anticipated
use of proceeds of the Offering and the completion of the
acquisition of the Lakewood Mill.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws
www.karoraresources.com
SOURCE Karora Resources Inc.