Kinross Gold has made a significant investment in Relevant Gold, sealing a subscription agreement worth $1.53 million. This private placement financing deal will give Kinross a stake of approximately 9.9% in Relevant Gold’s common shares on a partially diluted basis.
The investment entails the purchase of 5.1 million units priced at $0.30 each, with each unit comprising one common share of Relevant Gold and a half share purchase warrant. Holders of the warrants have the right to acquire an additional common share at $0.35 per share for two years post-issue, with no finder’s fees involved in the agreement.
Upon completion of the placement, Kinross and Relevant Gold will enter into an investor rights agreement. This agreement will grant Kinross certain privileges, including the right to maintain their proportional shareholding in future financings, the option to increase their stake to 19.9%, and the establishment of a technical advisory committee with equal representation from both companies.
Relevant Gold CEO Rob Bergmann expressed his excitement about the partnership, stating that Kinross’s investment demonstrates confidence in the team’s exploration vision and execution capabilities. The funds from the placement will be used for exploration activities at Relevant Gold’s projects in Wyoming, US, and for general working capital purposes.
The finalisation of the placement is still pending approval from the TSX Venture Exchange, but it is expected to be completed soon. This strategic investment by Kinross marks a significant milestone for Relevant Gold, providing them with the resources to strengthen their corporate structure and accelerate their drilling programme.
