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- Kinetiko Energy (KKO) receives firm commitments to raise $2.8 million through a placement to sophisticated and professional investors
- The energy stock will issue around 28 million shares at 10 cents per share
- Additionally, Kinetiko will launch a share purchase plan to raise up to another $2 million
- The funds are being put towards exploration and drilling at the Amersfoort Project in South Africa
- Kinetiko ended Friday’s session 9.09 per cent in the red to close at 10 cents
Kinetiko Energy (KKO) has received firm commitments to raise $2.8 million through a placement.
The company will issue around 28 million shares to sophisticated and professional investors at 10 cents per share.
Executive Chairman Adam Sierakowski was pleased to have secured commitments from new investors.
“This is the first capital raising undertaken by Kinetiko outside our existing shareholders for over four years and we are pleased to welcome a number of new
institutional and sophisticated funds to the company’s register,” Mr Sierakowski said.
Additionally, Kinetiko will launch a share purchase plan to raise up to another $2 million. Eligible existing shareholders may apply for up to $30,000 new shares at the same price as the placement.
The company will use the money raised for exploration and drilling at its Amersfoort Project in South Africa, as well as for general working capital.
Specific work will include aeromagnetic surveys, exploration core drilling, interval test drilling, and pilot production costs.
“We will move forward with drilling as quickly as possible and have drilling planned and approved for over 12 months, creating regular newsflow and significant value for shareholders in the process.”
Kinetiko ended Friday’s session 9.09 per cent in the red to close at 10 cents.
