PERTH (miningweekly.com) – ASX-listed KGL Resources is hoping to raise some A$12.4-million to accelerate exploration at the Jervois copper project, in the Northern Territory.
The company will issue some 22.8-million new shares, priced at 30c each, to raise an initial A$6.9-million from a small group of sophisticated and institutional investors.
The share placement will be done under the company’s current capacity, and will not require shareholder approval.
A nonrenounceable pro rata entitlement offer of one new share for every eleven shares held, will also be undertaken with the aim of raising a further A$5.5-million.
The entitlement offer will also be priced at 30c a share.
“With this capital raising, KGL will be able to continue to advance the technical studies, expedite drilling to extend the copper mineralisation across the Jervois project and progress the necessary permitting through completion and submission of its environmental impact statement,” said KGL executive chairperson Dennis Wood.
Wood pointed out that in the past 18 months, KGL has made significant advances at Jervois, both in terms of exploration drilling success, but also in acquiring the strategically valuable Unca Creek tenement, and being awarded major project status by the Northern Territory government.