11:25 AM EDT, 06/04/2024 (MT Newswires) -- Kobo Resources (KRI.V) said Tuesday it raised $4.42 million as it closed the first tranche of a non-brokered private placement of share units and a concurrent brokered private placement.

The company said it raised $1.49 million as it placed 4.24-million units in initial non-brokered tranche, with each priced at at $0.35 and made up of a share and one half of a two-year warrant to buy a second share for $0.55.

The brokered placement raised $2.93 million from the sale of 8.38-million units with the same terms and price.

Luso Global Mining SA, a wholly owned subsidiary of Mota-Engil SGPS SA, has participated in the first tranche of the offering as a lead investor. Luso has subscribed for about 2.9 million units, representing gross proceeds of $1 million. Luso will subscribe for additional units as part of the second tranche of the offering.

Upon closing of the second tranche of the offering, Luso is expected to hold a 9.99% stake in Koboa.

The company plans to use the net proceeds of the financings to expand its 2024 diamond-drilling program at its Kossou project in Cote d'Ivoire, initiate a soil geochemical survey and a geological exploration program on the Kotobi research permit, and for general corporate and working capital purposes.

The company's shares were last seen up $0.01 to $0.41 on the TSX Venture Exchange.

Price: 0.41, Change: +0.01, Percent Change: +2.50