Join our daily newsletter At The Bell to receive exclusive market insights
- Kula Gold (KGD) has received firm commitments to undertake a $930,000 placement
- Approximately 23.37 million fully paid ordinary shares will be issued to sophisticated and professional investors at 4 cents
- This price represents a 9.1 per cent discount to Kula Gold’s last trading price of 4.4 cents on March 2
- Kula Gold will use the funds to carry-out exploration activities at its Brunswick and Marvel Loch projects, both of which lie in Western Australia
- Company shares are down 4.55 per cent and are trading at 4.2 cents
Kula Gold (KGD) has received firm commitments to undertake a $930,000 placement.
The company entered a trading halt on March 3 but did not disclose how much it would be raising or what it would be using the funds for.
Approximately 23.37 million fully-paid ordinary shares will be issued to sophisticated and professional investors at 4 cents.
This price represents a 9.1 per cent discount to Kula Gold’s last trading price of 4.4 cents on March 2.
Lazarus Corporate Finance acted as lead manager and will be paid a management and capital raising fee of 6 per cent of the proceeds raised.
Shares are expected to settle on or around March 11 and be allocated on or around March 12.
Kula Gold will use the funds to carry out exploration activities at its Brunswick and Marvel Loch projects, both of which lie in Western Australia.
In mid-February, Kula Gold found copper mineralisation at Brunswick which was identified via a recently completed field program.
Six rock chips samples have been sent to Bureau Veritas for gold, platinum group element and multi-element assay.
Depending on results, Kula Gold will conduct an extensive soil sampling program over areas of interest.
“Kula is pleased to announce the placement which will enable the company to undertake exploration, including drilling at both its Brunswick and Marvel Loch projects,” Chairman Mark Stowell commented.
“We are excited by the recent field program at Brunswick which has successfully identified primary copper mineralisation in silicified amphibolite,” he said.
“An extensive soil sampling program over these new areas of interest is planned for the coming weeks, followed by a drilling program to commence in April or May to test the extent of the mineralisation,” he added.
Shares in Kula Gold are down 4.55 per cent and are trading at 4.2 cents at 1:55 pm AEDT.
