Kingston Resources Ltd (ASX:KSN) (FRA:RZZ) has secured binding commitments to raise $12.5 million via a single-tranche institutional share placement to advance its Misima Gold Project in PNG to the next stage - as the foundation for a substantial new Asia-Pacific gold business.
Under the placement, the company will issue 48,076,923 million shares at 26 cents per share to institutional and sophisticated investors to raise gross proceeds of $12.5 million.
Alongside the placement, Kingston chairman Mick Wilkes has committed to take up $500,000 worth of shares at the same issue price as the placement, subject to shareholder approval, for total equity raising proceeds of $13 million.
“Taking the next steps at Misima”
Kingston managing director Andrew Corbett said: “We are delighted with the response we have had from investors during the book-build process, which reflects the strong positive sentiment towards the Misima Gold Project following our recently-released pre-feasibility study.
“We’re now looking forward to taking the next steps at Misima, advancing work on studies and approvals, and working towards the delivery of updated resource and reserve estimates next year.”
Funding project development
Funds raised under the placement will primarily be used to advance activities at the Misima Gold Project in PNG, as well as at the Livingstone Gold Project in WA.
Corbett said: “The coming 12 months is set to be an exciting and busy period for Kingston, as Misima moves into the DFS and approvals process, and with continued drilling activity planned to further improve the already compelling Project economics.”
Project development activities include:
- Extensional and infill drilling within the existing 3.6 million ounce Misima resource;
- Advancing mining studies and environmental studies at Misima;
- $1.65 million settlement of the acquisition of remaining joint venture interest in Misima, taking Kingston to 100% ownership;
- Exploration activities at Misima and Livingstone; and
- General working capital.
Kingston project locations.
Placement details
The placement will result in the introduction of several new institutions to Kingston’s share register, including Australian and international funds, and has also received strong support from the company’s existing shareholders.
An Extraordinary General Meeting (EGM) of shareholders is expected to be held in early 2021 for shareholders to approve the issuance of shares to Wilkes pursuant to listing rule 10.11 and to ratify the placement pursuant to Listing Rule 7.4.
The shares are expected to be issued on or around December 18, 2020.