TSX gains after CPI shows US inflation rose 3%
QUEBEC CITY - Kobo Resources Inc. (TSX.V:KRI), a junior mining company with a market capitalization of $23.27 million, has completed the second tranche of its non-brokered private placement, raising $1,444,875 through the issuance of 4,816,250 units priced at $0.30 each, the company announced Monday. According to InvestingPro analysis, the company currently shows a weak financial health score of 1.39, reflecting its exploration-stage status.
Combined with the first tranche that closed on September 10, the gold exploration company has raised total gross proceeds of $3,961,354.80 from the offering. The funding comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash, though maintaining a healthy current ratio of 2.59, indicating sufficient liquidity to meet short-term obligations.
Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant allows the holder to acquire one common share at $0.55 until September 10, 2027.
Kobo plans to use the proceeds to advance exploration initiatives at its Kossou Gold Project in Côte d’Ivoire, focusing on extending known mineralization zones at the Road Cut, Jagger, and Kadie targets. Funds will also support preliminary metallurgical work, ongoing soil geochemical surveys, trenching at Kossou, exploration at the Kotobi permit, and general corporate purposes.
LUSO Global Mining participated in the second tranche to maintain its 9.9% interest in the company. 3L Capital and Integrity Capital Group acted as financial advisors for the offering.
The company paid cash commissions of $15,120 and issued 50,400 broker warrants to certain finders. Additionally, Kobo paid $45,000 in advisory fees and issued 150,000 advisor warrants to the financial advisors.
Securities issued under the first tranche are subject to a statutory hold period until January 13, 2026, according to Canadian securities laws.
Kobo Resources is focused on gold exploration in Côte d’Ivoire, with its flagship Kossou Gold Project located approximately 20 km northwest of Yamoussoukro. According to the press release, the company has completed over 18,500 meters of diamond drilling, nearly 5,900 meters of reverse circulation drilling, and 5,900 meters of trenching at the project since 2023. With an EBITDA of -$3.97 million in the last twelve months, the company’s intensive exploration program reflects its pre-revenue development stage. Get access to 5 additional key financial insights and exclusive analysis with InvestingPro.
In other recent news, Kobo Resources Inc. announced its intention to raise up to $3 million through a non-brokered private placement. The funds are earmarked for gold exploration activities in Côte d’Ivoire. The company plans to issue up to 10 million units, each priced at $0.30. Each unit will consist of one common share and one-half common share purchase warrant. The full warrant will permit holders to purchase an additional common share at $0.55, valid for 24 months. This development is part of Kobo Resources’ ongoing efforts to advance its exploration projects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.