Kidman eyes A$6.5m raising for gold projects
PERTH (miningweekly.com) – Junior gold miner Kidman Resources would raise up to A$6.5-million through a share placement and rights issue to increase gold production at its Burbanks project and to complete the purchase of the Mt Holland goldfield.
Kidman said on Friday that the company would raise an initial A$3-million through a share placement to institutional and sophisticated investors, with the shares priced at 8.5c each.
A further A$3.5-million would be raised through a one-for-three rights issue, which would also be priced at 8.5c each.
The offer price represented a 19.5% discount to the company’s 15-day volume weighted average price.
The raising would enable Kidman to finalise the A$3.5-million acquisition of the Mt Holland project, in Western Australia, which had a combined measured, indicated and inferred mineral resource of 928 000 oz. Mt Holland hosted the flagship Blue Vein deposit, which had a resource of 372 000 oz, at 2.30 g/t gold.
Kidman was hoping that an extensive drilling campaign at Mt Holland would grow the high-grade resource, allowing the company to update an existing prefeasibility study focusing on the Blue Vein deposit, which found that the project could produce about 43 000 oz/y over an initial three-year period.
Meanwhile, funding would also be used to lift production at the Burkbanks operation, also in Western Australia, by some 50% to 30 000 oz/y, and to grow the existing 99 000 oz mineral resource to underpin a multiyear mine life.
The Burbanks project poured its first gold in September last year.
Kidman told shareholders on Friday that the two-pronged strategy at Burbanks and Mt Holland was aimed at enabling the company to achieve its goal of becoming a midtier gold producer.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
