- Gold explorer Kingwest Resources (KWR) will raise $3.5 million to fund further exploration at the Menzies Gold Project
- Drilling for roughly 12,000 metres is expected to begin on February 24
- This will target a high-grade gold extension to the known mineralisation
- In September last year, Kingwest began a drilling program at five Menzies prospects
- Results consistently showed high-grade, and even bonanza-grade gold
- Unfortunately, Kingwest Resources is down 10 per cent today, with shares trading for 18 cents each
Gold explorer Kingwest Resources (KWR) has received firm commitments to raise a $3.5 million placement.
Sophisticated and institutional investors have displayed strong support for the raise.
The company will issue 21,212,121 ordinary shares at an issue price of $0.165 per share. This represents a 17 per cent discount to the last traded price and a 10 per cent discount to the 10-day volume-weighted average price (VWAP).
Funds raised will be used for exploration drilling at Kingwest’s Menzies Gold Project, as well as covering placement costs and working capital.
Drilling is expected to commence on February 24 and will target high-grade extensions to the current known mineralisation.
A combination of Reverse Circulation (RC) and diamond core drilling will cover 12,000 metres.
Additional follow-up drilling is also planned based on results from this program.
Since October 2019, drilling at the Menzies project has consistently uncovered high-grade, sometimes even bonanza-grade, gold mineralisation.
On December 16, the company confirmed bonanza gold grades in the final drill holes of its 2019 program.
The results from final drill holes also confirmed that all five prospects drilled (Lady Irene, Selkirk, Lady Shenton, Yunndaga and Pericles) at the Menzies project contain high-grade gold.
Kingwest Resources is down 10 per cent today, with shares trading for 18 cents each at 10:39 am AEDT.