KGL Resources’ (ASX: KGL) shares rose 36% last Friday to close at $0.12 after executing a binding sale agreement to sell the Murchison Gold Project for a total cash consideration of $15 million.
Shares in the company are currently trading at $0.11.
The transaction is expected to be completed in early February 2014, with funds to be allocated to the exploration and development of the Jervois copper project in the Northern Territory.
Recent drilling at Jervois has intersected massive and semi-massive sulphides at the Marshall-Reward deposit.
The sale will increase the company’s cash balance to $22 million, which considering its current market cap of $15.4 million, means it is trading well under cash backing.
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