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- Kingwest Resources (KWR) completes a bookbuild for a strongly supported $4 million placement
- More than 33.3 million ordinary shares will be issued to professional and sophisticated investors at 12 cents each
- Kingwest will use the money to undertake exploration at the Goongarrie Gold Project with a particular focus on the Sir Laurence Discovery
- Additionally, the company will continue to explore for near-surface and depth extension mineralisation at the Menzies Gold Project
- Kingwest ends the day 3.57 per cent in the red with shares trading at 13.5 cents
Kingwest Resources (KWR) has completed a bookbuild for a strongly supported $4 million placement.
The company entered a trading halt on October 12 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 33,333,334 ordinary shares will be issued to professional and sophisticated investors at 12 cents.
Shares are expected to settle on or around October 21.
Kingwest will use the money to undertake exploration at the Goongarrie Gold Project (GGP) with a particular focus on undertaking follow-up drilling at the Sir Laurence Discovery.
The money will also go towards a 2000-metre aircore drilling program to follow up on other Lake Goongarrie targets that returned significant results in phase one drilling.
Additionally, Kingwest will continue to explore for near-surface and depth extension mineralisation at the Menzies Gold Project.
CEO Ed Turner commented on the placement.
“We are very excited by our initial exploration success at Sir Laurence and eagerly anticipate the imminent drilling campaigns which we hope will confirm a large gold system,” Mr Turner said.
“This capital raise will provide the company with sufficient funding to test Sir Laurence and other regional targets in the period ahead of expected cashflow from our Menzies mining joint venture which we hope will supplement future exploration expenditure.”
Kingwest has ended the day 3.57 per cent in the red with shares trading at 13.5 cents in a $29.15 million market cap.
