Kingston Resources Ltd (ASX:KSN) has officially closed the share purchase plan (SPP) previously announced in November last year.
The company had offered existing eligible shareholders the opportunity to participate in a SPP to raise up to $4 million at the same issue price as the institutional placement, being 20 cents per share.
Kingston secured binding commitments from institutional and sophisticated investors for the placement totalling $14 million.
Today's announcement signals the official completion of its capital fundraising for the acquisition of the Mineral Hill Mine in New South Wales, with funds also to be used for the continued development at the Misima Gold Project in PNG.
The acquisition of Mineral Hill saw Kingston become a producing mining company with a diversified asset base in the Asia Pacific region. The gold and copper mine is ramping up production, with its target rates set to be reached in the current quarter.
Read: Kingston Resources transitions to gold producer on completing Mineral Hill Mine acquisition
New shares issued, plans for spending made
Just over a million new fully paid ordinary shares will be issued at 20 cents per share, raising a total of $230,000 dollars. Shares issued under the SPP will be allotted next Monday.
The raised revenue will provide Kingston with more than enough capital to advance its exploration and development projects at both Misima Gold and Mineral Hill Mine.
Plans for a definitive feasibility study are also due for completion later this quarter at Misima.
Written by Duncan Bailey