Kingston Resources Ltd (ASX:KSN) has completed the institutional components of a $13.5 million capital raise for $8.8 million by way of $8.1 million private placement and a $730,000 accelerated institutional component of the entitlement offer.
Under the institutional capital raise around 135,732,433 new ordinary shares will be issued at the price of $0.065 per share.
Retail entitlement offer
Kingston is seeking to raise a further $4.7 million via a fully underwritten retail entitlement offer.
Under this offer, eligible shareholders can subscribe for one new share for every six shares held at the record date — 7.00pm (AEDT) on April 3, 2024, at the issue price of $0.065.
The retail component of the entitlement offer is fully underwritten by Deutsche Balaton Aktiengesellschaft, an associate of Delphi Unternehmensberatung AG, an existing shareholder and a sophisticated investor.
Eligible shareholders who take up their full entitlement may also participate in the shortfall facility by applying for additional new shares in excess of their entitlement.
Kingston Resources is producing gold from its Mineral Hill gold and copper mine in NSW and is developing the 3.8 million ounce Misima Gold Project in PNG.
The company’s objective is to establish itself as a mid-tier gold and base metals company with multiple producing assets.