Kingston Resources Ltd (ASX:KSN) has will draw down the second tranche of a loan totalling $5 million from PURE Asset Management Pty Ltd.
Once executed, Kingston will fully have utilised the $10 million loan facility provided by PURE.
The utilisation of the tranche 2 loan will trigger the issuance of an additional 35,714,286 warrants to PURE.
Use of funds
Kingston will put the funds towards the refurbishment of the processing plant, re-accessing underground infrastructure and pre-production waste stripping in the open pit.
Existing cash reserves, continuous operating cash flow and the proceeds from the placement and share purchase plan (SPP) will supplement this financing.
Kingston has been gearing up for a new phase of growth, after unveiling an updated Life of Mine (LOM) plan for its Mineral Hill Project in central New South Wales as well as a A$6.5 million capital raising program to solidify the company’s position in the Cobar Basin.
The company completed a bookbuild for a two-tranche A$5.5 million institutional placement and intends to offer existing shareholders the opportunity to participate in a A$1 million SPP.
Kingston Resources managing director Andrew Corbett expressed his sentiments: "The drawdown of this final tranche represents a pivotal piece of the funding puzzle necessary to progress Mineral Hill to the next development phase.
"PURE has consistently shown immense support for Kingston and we are delighted to be partnering with them on this project."