Kaminak Gold Does Huge Financing


Kaminak Gold Corp. has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and Mackie Research Capital Corp. and including Fraser Mackenzie Ltd. to sell 3,335,000 common shares at a price of $1.50 and 2,942,000 flow-through common shares at a price of $1.70 for total gross proceeds of $10,003,900. In addition, the company will grant the underwriters an overallotment option, exercisable prior to the closing of the offering, to purchase from the company up to an additional 15 per cent of securities issued through the offering, in any combination of common shares and flow-through shares, at the same price as is applicable to the offering.

The underwriters will receive a cash commission of 6 per cent of the gross proceeds raised, and non-transferable share purchase warrants entitling the underwriters to purchase, at a price of $1.50 within 24 months after closing of the offering, common shares equal to 6 per cent of the total number of securities sold pursuant to the offering.

The company intends to use the net proceeds of the offering to conduct exploration activities on its Coffee project located in the White gold district, Yukon, and for general working capital purposes.

Closing of the offering is anticipated to occur on or before July 29, 2010, and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the offering and through the overallotment option will be subject to a four-month hold period which will expire four months from the date of closing.

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