04:11 PM EDT, 06/21/2017 (MT Newswires) -- Kerr Mines Inc. (KER.TO) reiterated after close of trade Wednesdaythat it intends to complete a non-brokered private placement with subscriptions exceeding the originally announced target of $5 million due to high investor interest. According to a statement, Kerr intends to issue up to 45 million units of the company at a price of $0.18 per unit and a maximum of 22.5 million warrants.

Kerr said the issuance of the common shares forming part of the units represents approximately 23.6% of the current issued and outstanding common shares on a non diluted basis and with the potential maximum issuance of the 22.5 million warrants represents approximately 35.4% of the current issued and outstanding common shares. The company will use the net proceeds from the offering to finance its exploration program at its flagship Copperstone Mine in Arizona.

Each Unit of the offering will be comprised of one common share and one half of one common share purchase warrant, with each warrant entitling the holder thereof to acquire a common share at a price of $0.27 per share for a period of 24 months from the date of issuance, provided, that if, at any time the common shares trade on a stock exchange at a volume weighted average trading price of C$0.40, or greater, per common share for a period of 20 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case the warrants will expire on the 30th day after the date on which such notice is given by the company.

KER added the price of $0.18 per unit represents a discount of approximately 23.1% to the $0.2342 volume weighted average trading price of the common shares on the TSX for the five trading days immediately preceding the date of filing of the original notice of the offering with the TSX. The completion of the offering will not "materially affect control" of the company.

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