- Kula Gold (KGD) receives firm commitments to undertake a $1.8 million share placement
- A total of 36 million fully paid ordinary shares will now be issued to sophisticated and professional investors at five cents
- Kula will use the money to progress exploration at its wholly owned Brunswick and Southern Cross Airfields projects in Western Australia
- Specifically, drilling will be undertaken at the Boomerang Prospect to extend mineralisation in all directions and estimate a short-term JORC resource
- Shares in Kula are steady on the market and were trading at 5.4 cents at 3:27 pm AEST
Kula Gold (KGD) has received firm commitments to undertake a $1.8 million share placement.
The company entered a trading halt on July 19 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 36 million fully paid ordinary shares will now be issued to sophisticated and professional investors at five cents.
This price represents a 7.1 per cent discount to Kula’s last trading price of 5.4 cents on July 16.
Foster Stockbroking will act as lead manager and will be paid a management and capital raising fee totalling six per cent of the gross funds raised.
Kula will use the money to progress exploration at its wholly owned Brunswick and Southern Cross Airfields projects in Western Australia.
Specifically, a dedicated drilling campaign will be undertaken at the Boomerang Prospect to extend mineralisation in all directions and estimate a short-term JORC resource.
The drill holes will be extended at depth sufficient enough to test for potential gold bearing structures immediately beneath the kaolin mineralisation.
Shares in Kula were steady on the market and were trading at 5.4 cents at 3:27 pm AEST.