Kingwest Resources Ltd (ASX:KWR) is looking to raise $1.5 million through a share purchase plan (SPP) that will facilitate ongoing exploration at the Lake Goongarrie gold discovery.
The company expects shareholders will benefit from the SPP, due to the potential success of the current diamond drilling exploration program.
Most of the funds raised will be used to focus on continuing exploration of the Sir Laurence discovery at Lake Goongarrie.
KWR is also focused on delivering value through commercialising its Menzies Gold Project, which will see mining of the Selkirk deposit undertaken by BML Ventures Pty Limited and profits to be shared 50/50.
Read: Kingwest Resources signs mining agreement to restart gold production at Menzies
Other discussions regarding the broader Menzies Gold Project mineral resource are ongoing.
About the SPP
Eligible shareholders will receive one free attaching option for every two shares subscribed for under the SPP. Each free attaching option will have an exercise price of $0.10 and an expiry date of February 29, 2024.
Key terms of the SPP are:
- Up to $30,000 per eligible shareholder, across all of their holdings.
- KWR intends to raise up to A$1.5 million (the board reserves the right to accept additional subscriptions, close the SPP early and/or scale back applications in its absolute discretion).
- Further information regarding the SPP (including terms and conditions of the SPP) will be provided to eligible shareholders in the SPP offer booklet, which will be made available to eligible shareholders shortly. Eligible shareholders wishing to participate in the SPP will need to apply in accordance with the instructions in the SPP offer booklet. Participation in the SPP is optional.
