Kerr Mines Announces C$3 Million Bought Deal Offering

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TORONTO, July 13, 2020 (GLOBE NEWSWIRE) -- Kerr Mines Inc. (TSX: KER, OTC: KERMF), (“Kerr” or the “Company”) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. (the “Underwriter”), under which the Underwriter has agreed to buy, on a bought deal basis, 21,500,000 units of the Company (the “Units”), at a price of C$0.14 per Unit (the “Offering Price”) for gross proceeds of $3,010,000 (the “Offering”). Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one half of one Common Share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder thereof to purchase one Common Share (a “Warrant Share”) at a price of C$0.22 for a period of 24 months following the Closing Date (as defined below).

The Company has agreed to grant the Underwriter an option to purchase up to an additional 3,225,000 Units at the Offering Price, exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering. The Offering is expected to close on or about August 4, 2020, or such other date as may be agreed by the Underwriter and the Company (the “Closing Date”), and is subject to the Company receiving all necessary regulatory approvals, including the approval of the TSX and applicable securities regulatory authorities. The Units will be offered by way of a short form prospectus in each of the provinces of Canada, excluding Quebec.

The Company plans to use the net proceeds from the Offering for the exploration and advancement of the Company’s Copperstone gold project and for general corporate purposes.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.