Kerr Mines is aiming to raise $5 million in working capital through a non-brokered private placement.
The company announced it intends to complete a proposed private placement offering of up to 100,000,000 common shares of the company at a price of $0.05 for gross proceeds of $5 million. The company will use the net proceeds from the offering for general working capital purposes.
The offering is scheduled to close on or about March 17, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
The company also announced it has acquired a 100 per cent interest in 42 unpatented mining claims located in Dufay Township in the province of Quebec pursuant to the terms of a mining claim acquisition agreement. The acquisition of the Dufay property adds approximately 11 kilometres of strike length to the company's land package along the Cadillac-Larder Lake Break.
The announcement follows a flurry of activity by the company this year. Kerr announced its plans to merge with Bear Lake Gold Ltd. in January. Bear Lake holds 13 kilometres of property along the Cadillac Larder Lake Break.
Kerr has also entered a letter agreement to acquire American Bonanza Gold Corp., which has property in Arizona.
The company additionally completed a $5.35-million private placement to generate exploration funds for its McGarry Mine project, located in Virginiatown near Kirkland Lake.