KGL Resources Ltd (ASX:KGL) has completed its entitlement offer, raising A$23.04 million at an offer price of A$0.37.
The 1 for 6 non renounceable entitlement offer of fully paid ordinary shares in KGL was announced on April 13 and closed at 5.00pm (AEDT) on Thursday, May 5, 2022, raising a total of A$23.04 million before costs including application shares under the top-up facility, representing a total take-up rate of approximately 95.2%.
In thanking shareholders, KGL's managing director Simon Finnis highlighted the progress the company is making at its Jervois Copper Project in the Northern Territory of Australia.
“The feasibility study is on target for completion in mid-2022. The study was extended to allow for potential business case advantages to be investigated and incorporated, including the benefits of the Glencore offtake agreement and the updated Jervois mineral resource.
“The funds raised under the entitlement offer will allow the completion of the feasibility study and the continuation of the Front End Engineering Design (FEED). Based on the outcomes of the feasibility study, the funds will also go towards placing orders for long lead time items and commencement of early works.”
Major shareholder support
KGL’s major shareholder, KMP Investments Pte Ltd and Denis Wood (on behalf of his controlled entities), applied for 6.5 million top-up shares, in addition, to take up its pro-rata entitlement, representing an additional contribution of $2.405 million.
That confidence in operations will result in KMP’s shareholding in KGL increasing by 1.61%, subject to shareholder approval.
KGL reserves the right to place the remaining shortfall from the entitlement offer within three months of the closing date at a price not less than the issue price of A$0.37 per new share.
The issue and allotment of the new shares under the entitlement offer is scheduled to occur on Thursday, May 12, 2022, with trading of the new shares to start on Friday, May 13.