Kingwest Resources Ltd (ASX:KWR) has received firm commitments from professional and sophisticated investors to raise $3 million in a placement of 37.5 million shares at an issue price of 8 cents per share.
The company has received a firm commitment from major shareholder Horizon Minerals Ltd (ASX:HRZ) to subscribe for 6.25 million ordinary shares with a total value of $500,000.
All subscribers to the placement will also receive one new unlisted option for every two placement shares subscribed.
These free attaching options will have an exercise price of $0.15 and expire on December 30, 2023.
Placement details
The issue price per placement share of $0.08 represents a discount of 11% to the last traded price of the company’s shares on the ASX.
Funds raised from the placement will be used to continue the company’s strategy of growing the resources at Menzies Gold Project with extensional drilling, additional exploration drilling at the Goongarrie Gold Project as well as general working capital.
Peloton Capital Pty Ltd acted as the lead manager to the placement and will receive a 6% fee on all the funds raised under the placement.
Shares are trading 10% higher at 9.9 cents.