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KGL Resources (ASX:KGL) completes $9.5M entitlement offer

Mining
ASX:KGL      MCAP $68.07M
19 March 2021 17:00 (AEST)
KGL Resources (ASX:KGL) - Executive Chairman, Denis Wood

Source: NT News

KGL Resources (KGL) has completed a non-renounceable entitlement offer and raised $9,574,137.

On February 22, the company revealed it had completed a $12 million strategic placement and was looking to raise up to $11.77 million via an entitlement offer.

All up, 22,795,564 shares were taken up, representing a take-up of roughly 81.3 per cent.

Under the offer, shareholders were able to receive one new share for every 13 held priced at 32 cents.

Shares are expected to be issued and allocated on March 23 and begin trading on the ASX on March 24.

KGL previously stated it would use the funds 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, undertake financing and complete a mine study.

“Infill and step-out drilling has recommenced at Jervois and following the success of this raising, we will add a second rig in April to explore the Greenfield targets,” Executive Chairman Denis Wood said.

“The feasibility study is well underway as well as financing discussions. It is our ambition to commence development in the second half of this year subject to the final investment decision,” he added.

KGL has ended the day in the grey with shares trading at 71 cents in a $238.3 million market cap.

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