Kingston Resources Ltd (ASX:KSN) is in a trading halt pending an announcement regarding the placement of a shortfall from its pro-rata non-renounceable rights issue.
The trading halt will remain in place until the beginning of trade on Monday, August 19, or when an announcement is made to market, whichever occurs earliest.
Kingston's rights issue in May raised $938,670 to underpin ongoing exploration activities at the Misima and Livingstone projects.
An earlier placement of 276 million shares to institutional and sophisticated investors raised net proceeds of $4.3 million.
Drilling targeting maiden gold resource
The company has recommenced drilling at its 75%-owned Livingstone Gold Project in WA targeting the Kingsley prospect where aircore drilling in 2018 defined a near-surface zone of mineralisation over 800 metres long.
This reverse circulation program aims to infill the Kingsley area providing data to potentially estimate a maiden JORC resource later this year.
Drilling will also test for primary mineralisation at depth below the shallower oxide zone.
Evaluating deeper mineralisation potential
Kingston Resources managing director Andrew Corbett said: “This is an important development in the Livingstone exploration program, with our initial RC campaign helping to move us towards a maiden resource estimate.
“We’re also looking forward to evaluating the potential for deeper mineralisation in the fresh rock below these high-grade aircore intersections.
“These programs will run concurrently with the multi-faceted exploration program that is ongoing at our flagship Misima Gold Project in Papua New Guinea.”
Highly encouraging results have been received from an initial program of confirmatory drilling at the Ewatinona deposit of the flagship 2.8 million ounce Misima project.
Shares last traded at 1.9 cents.