Kutcho Copper (TSXV: KC) announced on Tuesday it plans to raise C$2 million through a non-brokered private placement of 10 million units at a price of C$0.20 per unit.
Each unit will comprise one common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one common share at C$0.30 for a period of two years from closing.
Proceeds of the financing will be used for the company’s feasibility study on its Kutcho copper project in northern British Columbia, as well as for general corporate and working capital purposes.
Meanwhile, Wheaton Precious Metals has agreed to amend the definitive documentation related to its previous convertible debenture investment in the company. Under the amendment, semi-annual interest payments that are otherwise owing by Kutcho Copper on the next two payment dates will now all be deferred to December 31, 2021.
Moreover, Wheaton has also agreed to extend the maturity date of the C$1.3 million non-revolving credit facility provided to Kutcho Copper to December 31, 2021.
These amendments are subject to customary conditions, including completion of the private placement.
Shares of Kutcho Copper surged over 20% to a 52-week high of C$0.25 Tuesday. The Vancouver-based copper miner has a market capitalization of approximately C$16.4 million.