- Kingston Resources (KSN) will raise $12.5 million through an institutional share placement to institutional and sophisticated investors
- Over 48 million shares will be issued at 26 cents which represents an 11.2 per cent discount to the 10-day volume-weighted average price
- Additionally, Kingston’s Chairman, Mick Wilkes will subscribe for $500,000 worth of shares
- If shareholders approve, the extra funds will bring the total amount raised to $13 million
- Kingstong will use the money to conduct exploration activities at Kingston’s Misima Gold Project in Papua New Guinea as well as the Livingstone Gold Project in WA
- Company shares are down 5 per cent and trading at 28.5 cents
Kingston Resources (KSN) has secured binding commitments to raise $12.5 million through an institutional share placement.
Under the placement, 48,076,923 million shares will be issued at 26 cents per share to institutional and sophisticated investors.
The issue price represents an 11.2 per cent discount to the 10-day volume-weighted average price.
While the placement has received support from existing shareholders, it will also result in the introduction of multiple new institutions to the company’s share register. This includes both Australian and international funds.
In addition to the placement, Kingston’s Chairman, Mick Wilkes will subscribe for $500,000 worth of shares. If shareholders approve, the extra $500,000 will bring the total amount raised to $13 million.
Shareholders will be given the opportunity to approve the shares being issued to the Chairman at an extraordinary general meeting which is expected to be held early next year.
Funds from the placement will be used for exploration at Kingston’s Misima Gold Project in Papua New Guinea as well as the Livingstone Gold Project in WA.
Specifically, work will include extensional and infill drilling within Misima’s existing 3.6 million ounce resource, advancing mining and environmental studies. Kingston will also be able to put down a $1.65 million settlement of the acquisition to increase its interest in the project to 100 per cent.
“The coming 12 months is set to be an exciting and busy period for Kingston, as Misima moves into the DFS and approvals process, and with continued drilling activity planned to further improve the already compelling project economics,” Managing Director Andrew Corbett said.
Company shares are down 5 per cent and trading at 28.5 cents at 12:07 pm AEDT.