Kingston Resources Ltd (ASX:KSN) will raise $6.85 million from an oversubscribed share placement to support the company’s plan to acquire four key lithium fields in Western Australia and the Northern Territory.
The deal involves 20 lithium-prospective tenement applications in Western Australia and the Northern Territory covering four key project areas - Mt Cattlin, Greenbushes, Bynoe/Wingate and North Arunta.
The Mount Cattlin package lies to the south of the Mt Cattlin lithium mine owned by Galaxy Resources Ltd (ASX:GXY).
Consideration for the transaction comprises a cash payment of $500,000 payable in two tranches and the issue of 165 million Kingston shares, worth $5.12 million valued at Kingston’s last traded price.
While the Greenbushes tenement lies immediately south of Talison Lithium’s (TSE:TLH) Greenbushes mine, the largest hard rock lithium mine in the world.
Up to 180 million Kingston shares will be issued if one or more of the tenements contain inferred mineral resources of at least 10 million tonnes at minimum 1% Li2O.
Upon completion of the transaction, Andrew Corbett will be appointed as managing director of Kingston.
Bell Potter managed the capital raising.
The new lithium project acquisition are having a positive impact on the company’s share price, which has increased by about 94% during the past month.
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