Kingwest Resources Ltd (ASX:KWR) has upsized its share purchase plan to $2.5 million amid strong shareholder demand.
The gold explorer and producer initially set out to raise $1.5 million in mid-July, but investors applied for just more than 38.5 million shares, valued at $2.5 million.
Considering the heavy oversubscription, Kingwest has decided to upsize the raise and issue all new shares, priced at 6.5 cents each.
The securities should hit investors' pockets around the end of this week, while every participating shareholder will receive a 10-cent free-attaching option for every two shares they subscribed for.
Where will the money go?
Funds raised under Kingwest’s share purchase plan will primarily fund exploration at the Sir Laurence discovery at Lake Goongarrie in WA.
Kingwest considers this an overlooked gold opportunity, and it has acquired 125 square kilometres of ground across the outcropping Goongarrie Goldfield to further exploration.
Diamond drilling has been the name of the game so far, and the cash injection will keep the drill bit spinning and allow Kingwest to plan its next steps at the gold camp.