MONTREAL, QUEBEC--(Marketwired - Nov. 17, 2017) - Kintavar Exploration Inc. (the "Corporation" or "Kintavar") (TSX VENTURE:KTR) announces the first closing of a non-brokered private placement offering (the "Private Placement"), consisting of 1,475,784 shares, issued on a flow through basis, at a price of $0.14 per share and of 1,590,908 units ("Units") at a price of $0.11 per Unit for aggregate gross proceeds of $381,610. Each Unit being comprised of one (1) Share and one half of one (1/2) Share purchase warrant, each whole warrant entitling the holder hereof to acquire one (1) Share at a price of $0.14 per Share until November 15, 2019. The Company anticipates to close the final tranche of the offering on or about December 1, 2017.
Certain officers of the Company have participated in this Private Placement for a total of 100,000 Flow-Through Shares distributed pursuant to the private placement (the "Insiders' Participation"). The Insiders' Participation is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions ("Regulation 61-101") in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of the Insiders' Participation or the consideration paid by such insiders does not exceed 25% of the market value of the Company. The Company did not file a material change report at least 21 days prior to the completion of the private placement since the Insiders' Participation was not determined at that moment.
The Company will use the proceeds of the Private Placement for the upcoming drilling program on the Mitchi property and for working capital purposes.
The shares acquired by the subscribers are subject to a hold period of four months plus one day from the closing date, ending on March 17, 2018, except as permitted by applicable securities legislation and the rules of TSX Venture Exchange.
Transaction with Osisko Mining Inc.
In addition, the Corporation completed a transaction with Osisko Mining Inc. ("Osisko") whereby Osisko acquired Kintavar's Comptois property in the Lebel-sur-Quevillon region in Quebec for a total proceeds of $50,000 in cash and a 2% NSR royalty with 1% repurchasable for an amount of $1,000,000.
About the Mitchi Property
The Mitchi property (approx. 21,000 hectares, 100% owned) is located west of the Mitchinamecus reservoir, 100 km north of the town of Mont-Laurier. The property covers an area of more than 210 km2 accessible by a network of logging and gravel roads with a hydro-electric power substation located 14 km to the east. The property is located in the north-western portion of the central metasedimentary belt of the Grenville geological province. Many gold, copper, silver and manganese mineralized showings have been identified to date, with many characteristics suggesting of a sediment-hosted stratiforme copper type deposit (SSC) in the Eastern portion of the property and Iron Oxide Copper Gold ore (IOCG) and skarn type deposits in the Western portion. Osisko Mining holds a 2% NSR on 39 claims and 1% NSR on 21 other claims of the Mitchi property.
