Karora Resources Announces C$50 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

TORONTO, May 24, 2022 (GLOBE NEWSWIRE) -- Karora Resources Inc. (TSX:KRR; OTCQX:KRRGF) ("Karora" or the “Corporation") is pleased to announce that it has entered into an agreement with Haywood Securities Inc. (“Haywood”), to act as co-lead underwriter and sole bookrunner, and Cormark Securities Inc. (together with Haywood, the “Co-Lead Underwriters”), to act as co-lead underwriter, on their own behalf and on behalf of a syndicate of underwriters (together with the Co-Lead Underwriters, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 10,417,000 common shares in the capital of the Corporation (the “Common Shares”) at a price of C$4.80 per Common Share (the “Issue Price”) for gross proceeds to the Corporation of C$50,001,600 (the “Offering”).

In addition, the Corporation has agreed to grant the Underwriters an option to purchase up to an additional 15% of the number of Common shares sold under the Offering at a price per Common Share equal to the Issue Price, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering.

The Corporation intends to use the net proceeds received from the Offering to fund a portion of the cash consideration due at a closing of the Lakewood Mill acquisition as further described in the Corporation’s news release dated today (which transaction is subject to the satisfactory completion by the Corporation of its due diligence and other applicable closing conditions), advancement of the Corporation's nickel exploration and development program at Beta Hunt, and for working capital and general corporate purposes.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (other than Quebec). The Common Shares will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.

The Offering is scheduled to close on or about June 15, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.