Kingsmen Resources Raises C$13 Million in Bought Deal to Advance Mexican Silver-Gold Projects

Kingsmen Resources ( (TSE:KNG) ) has issued an update.

Kingsmen Resources has closed a bought deal private placement raising gross proceeds of about C$13 million through the sale of 5,777,778 units at C$2.25 each, with each unit comprising one common share and half a warrant exercisable at C$3.00 until February 11, 2029. The financing, led by Red Cloud Securities and still subject to final TSX Venture Exchange approval, will fund exploration and advancement of the Las Coloradas and Almoloya projects in Mexico, as well as working capital and general corporate purposes, potentially accelerating development in a key silver-gold district.

Under the terms of the deal, Red Cloud received cash fees of roughly C$910,000 and 404,444 broker warrants exercisable at the offering price until 2029, while units issued to Canadian investors under the listed issuer financing exemption are immediately freely tradeable. By strengthening its balance sheet with equity capital that trades freely in Canada, Kingsmen aims to support ongoing drilling and project work in a highly prospective region, which could enhance its exploration profile and future growth prospects if results continue to be positive.

More about Kingsmen Resources

Kingsmen Resources is a discovery-focused mineral exploration company concentrating on two 100%-owned precious metals districts, Las Coloradas and Almoloya, in the historic Parral region of Chihuahua, Mexico. The projects cover past-producing high-grade silver and gold mines situated on major structural corridors within one of the world’s most prolific silver belts, and the company also holds a 1% NSR royalty on GoGold Resources’ La Trini claims in Jalisco State.

Average Trading Volume: 57,745

Technical Sentiment Signal: Buy

Current Market Cap: C$55.16M

Learn more about KNG stock on TipRanks’ Stock Analysis page.