PERTH (miningweekly.com) – Junior gold miner Kingsgate Consolidated on Monday announced a capital raise plan to progress the restart of operations at its Chatree gold mine, in Thailand.
The company told shareholders that it would issue up to 30.7-million new shares, at a price of between A$1.50 and A$1.60 each, and would also undertake a share purchase plan (SPP) at the same price.
The placement price will be determined through a variable price bookbuild.
The placement will be undertaken in a single tranche under Kingsgate’s existing placement capacity and is expected to settle on March 30.
Under the SPP, eligible shareholders would be able to subscribe for up to A$30 000 of new shares in the company. The SPP is expected to open on April 3 and close on April 24.
Kingsgate said on Monday that the placement funds will be used to fund Plant 2 commissioning and working capital costs as processing of stockpiles re-commences, as well as provide optionality around the repayment of the $15-million Taurus Bridge Facility and/or acceleration of the Plant 1 refurbishment.
Kingsgate last week poured its first gold at Chatree after the Thailand government allowed the company to re-open the mine earlier this month.