PERTH (miningweekly.com) – Base metals hopeful KGL Resources will raise some A$23.77-million to develop its Jervois copper project, in the Northern Territory.
The company on Monday announced the successful completion of a strategic institutional share placement, which raised an initial A$12-million, which had been priced at 42c a share.
KGL is now hoping to undertake a 1-for-13 non-renounceable entitlement offer to raise a further A$11.77-million, which will also be priced at 42c a share.
Proceeds from the equity raising will go towards the Jervois copper project, and would enable KGL to optimise mine planning, complete project feasibility, undertake financing, and provide a pool of funds to test additional exploration targets in the area.
“At Jervois, the aim is to recommence infill and step-out drilling to increase the resource base and extend the current mine life and project economics,” said executive chairperson Denis Wood.
“We will also seek to leverage the strong correlation observed between DHEM analytics and mineralisation, as evidence from the work done in recent years. As such, some of the proceeds will be directed towards additional geophysics and drilling of key greenfield exploration targets at Jervois.”