Toronto, Ontario--(Newsfile Corp. - April 2, 2025) - KO Gold Inc. (CSE: KOG) ("KO Gold" or the "Company") is pleased to announce that it has entered into convertible loan agreements for aggregate proceeds of C$200,000 (the "Convertible Loans"), in addition to its previously announced non-brokered private placement of up to 10,000,000 units ("Units") at a price of C$0.20 per Unit for gross proceeds of up to C$2,000,000 (the "Private Placement").
The Convertible Loans were pursued as a complementary source of short-term financing. The Convertible Loans bear interest at a rate of 12% per annum and are due six months from the date of closing. At any time prior to maturity, the principal and accrued interest may be converted into Units of the Company (at the Lender's option) on the same terms as the Private Placement. The Company anticipates closing the Convertible Loans on or about Tuesday, April 8, 2025.
Proceeds from the Convertible Loans will be used for corporate and G&A purposes. As security, the Company has agreed to grant a fixed and floating charge over all of its present and future assets, undertaking, and property. The Lenders may register such security at its discretion under the applicable personal property security legislation.
All securities issued pursuant to the Convertible Loans will be subject to a statutory hold period of four months and one day from issuance.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About KO Gold Inc.
KO Gold is a Canadian junior exploration company listed on the CSE under "KOG". The Company's strategy is to acquire and explore highly prospective gold properties within the Otago Gold District in New Zealand. KO Gold has eight 100%-owned prospecting and exploration permits within the Otago Gold District for a combined land package of 740 km2. The Company's Smylers and Glenpark EPs are located adjacent to OceanaGold's Macraes Gold Mine and the Carrick EP hosts the historic Carrick Goldfield which holds promise as a significant gold deposit near Santana Minerals' Bendigo-Ophir Gold Project. KO Gold has spent over C$3M in exploration and drilling on its permits in the Otago Gold District over the past five years including RC and diamond drilling on its Smylers EP.
For further information, please contact:
Greg Isenor, President and CEO, Director
Tel: (902) 832-5555
Email: info@kogoldnz.com
Website: www.kogoldnz.com
KO Gold Inc.
Suite 802 - Sun Tower, 1550 Bedford Highway Bedford, Nova Scotia
B4A 1E6 Canada
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
This news release contains certain "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate," "may," "will," "would," "potential," "proposed" and other similar words or statements that certain events or conditions "may" or "will" occur. These forward-looking statements include, but are not limited to, statements regarding the completion of the proposed Private Placement and Convertible Loans and the intended use of proceeds. Forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made and are subject to a variety of known and unknown risks, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, the Company's ability to complete the Private Placement and Convertible Loans on the terms announced (or at all), the receipt of all necessary approvals, market conditions, and the ability to use the proceeds as intended. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Readers are cautioned against attributing undue certainty to forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Actual events or results could differ materially from the Company's expectations or projections.
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SOURCE: KO Gold Inc.
