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Kingston Resources raising up to $8.4 million to progress PNG and WA gold projects

Last updated: 06:25 27 May 2020 BST, First published: 06:14 27 May 2020 BST

Kingston Resources Ltd - Kingston Resources to raise up to $8.4 million progressing key PNG gold projects
Existing shareholders can participate through a SPP to raise an additional $2 million

Kingston Resources Ltd (ASX:KSN) is raising up to $8.4 million to progress its key 3.2-million-ounce gold project in Papua New Guinea and the Livingstone Gold Project in WA.

The company received binding commitments for a share placement comprising the issue of 40 million shares at 16 cents per share to institutional and sophisticated investors, raising proceeds of $6.4 million.

Kingston will also launch a share purchase plan (SPP) providing existing eligible shareholders with the opportunity to participate in this milestone capital raising on the same terms as the share placement and aiming to raise an additional $2 million.

The company is delighted to welcome several new institutional shareholders to its register as part of the placement and would like to thank its existing shareholders for their ongoing support.

A reflection of gold assets

Managing director Andrew Corbett said the strong response from investors during the bookbuild reflected the quality of the company’s gold assets.

It also reflected the potential for a significant value uplift as the flagship Misima project advanced through PFS and mining studies towards a maiden ore reserve which is targeted by the end of 2020.

He said: “We are pleased to welcome a number of new investors to our register as part of the placement and would like to thank our major shareholders for their ongoing support.

“The rest of 2020 will be exciting for Kingston shareholders as we work towards the completion of the PFS and reporting a maiden Ore Reserve at Misima.

“Following the significant structural work completed earlier in 2020 we are also excited to get back into drilling the Livingstone Project in WA, with the objective of delineating a maiden JORC mineral resource at Kingsley.”

Funds to progress activities

Funds raised will be used to advance the Misima project and to accelerate exploration at Livingstone.

Specifically, proceeds will be applied to:

  • The Misima PFS;
  • Advancing the Misima approvals process;
  • Exploration and resource expansion drilling at Misima;
  • Exploration drilling at the Livingstone Gold Project; and
  • General working capital.

Sale of Dry Creek Royalty

Kingston has also agreed to the sale of a historical gold royalty established in 1992 over several tenements held by RNC Minerals within the Higginsville Gold Operations to Vox Royalty Corp.

The sale is for a total consideration of $650,000, of which $350,000 will be settled in cash and $300,000 in Vox Royalty shares.

Vox Royalty is a growth and precious metals focused mining royalty and streaming company that holds a portfolio of 36 royalties and streaming assets and one royalty option.

It has been the fastest-growing royalty and streaming acquisition company since January 2019, announcing 12 separate royalty transactions.

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