- Mineral exploration company KGL Resources (KGL) has completed a strategic placement and raised roughly $12 million
- The company has also proposed a non-renounceable entitlement offer to raise up to $11.77 million
- Under the placement, more than 28 million shares were issued to participants at 42 cents, representing an 8.7 per cent discount on its recent trading levels
- For the entitlement offer, shareholders will receive one new share for every 13 held as of February 25, 2021
- The offer will open on March 1, close on March 16 and shares will be issued on March 23
- KGL will use the money from both the placement and entitlement offer to enhance its Jervois Copper Project in the Northern Territory
- KGL has ended the day 4.35 per cent in the green with shares trading at 48 cents
Mineral exploration company KGL Resources (KGL) has completed a strategic placement and raised roughly $12 million.
The company has also proposed a non-renounceable entitlement offer to raise up to $11.77 million.
KGL entered a trading halt on February 18 but did not disclose how much it intended to raise or what it would use the funds for.
Under the placement, 28,571,427 shares were issued to the participants at 42 cents, representing an 8.7 per cent discount to KGL’s recent trading levels.
Shares are expected to settle on February 24 and be allocated on February 25.
For the entitlement offer, shareholders will receive one new share for every 13 held as of February 25, 2021.
The offer will open on March 1, close on March 16 and shares will be issued on March 23.
KGL will use the money from both the placement and entitlement offer to enhance its Jervois Copper Project in the Northern Territory.
In particular, the company will optimise mine planning, complete a feasibility study and undertake financing.
“At Jervois the aim is to recommence infill and step out drilling to increase the resource base and extend the current mine life and project economics,” Executive Chairman Denis Wood said.
“KGL’s geological team are excited about the potential exploration success on their tenements given their improved understanding of the areas structural and geological setting, and ability to use technologies to better target mineralised zones,” he added.
KGL has ended the day 4.35 per cent in the green with shares trading at 48 cents in a $154.4 million market cap.