PERTH (miningweekly.com) – ASX-listed KGL Resources has raised A$21.57-million of a A$23.77-million target to fund the development of its Jervois copper project, in the Northern Territory.
KGL on Friday announced that its entitlement offer had raised A$9.57-million before costs, bringing its total funds raised to A$21.57-million.
The company had received valid applications for more than 22.79-million new shares, representing some 81.3% of the more than 28-million shares offered under the 1-for-13 entitlement offer, which had been priced at 42c a share.
New shares issued under the entitlement offer are expected to start share trading on March 24.
KGL had previously said that proceeds from the equity raising would 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.
“Infill and step-out drilling has recommenced at Jervois and following the success of this raising, we will add a second rig in April to explore the key greenfield targets,” said executive chairperson Denis Wood on Friday.
“The feasibility study is well under way as well as financing discussions. It is our ambition to commence development in the second half of this year, subject to the final investment decision.”