Kaiser Reef Ltd (ASX:KAU) has raised $900,000 (before costs) in a share placement to support the development of expanded gold production at the A1 Mine in eastern Victoria.
A total of 6 million new shares will be issued to sophisticated and professional investors at $0.15 per share.
This price represents 15.52% and 15.02% discounts to the volume weighted average share price over the last five and 10 trading days respectively.
Potential to improve liquidity
The company’s board believes that this strategic placement will lead to an expanded high-quality and long-term shareholder base and improve access to sophisticated market investors beyond the interest currently experienced.
This support, along with the move towards substantially increased gold production, has the potential to improve the liquidity and capital market visibility of the company.
Placement details
Placement shares will be issued on the same terms as, and will rank equally in all respects with, the existing fully paid ordinary shares in the company.
Taurus Capital Group Pty Ltd is acting as the lead manager to the placement.
Kaiser Reef aims to lift production at A1, which is in the southern part of eastern Australia’s prolific Lachlan Fold Belt.
These plans follow the company pouring its 100th gold bar at A1 operations during December last year.
Since then power infrastructure has been progressively established and drilling of potential extensions has returned strong results.
READ: Kaiser Reef hits up to 2,006 g/t gold from deep drilling at A1’s Jupiter and Dukes Reefs
This includes underground drill results of up to 2,006 g/t gold that extend high-grade mineralisation in northerly extensions to Jupiter Reef and beyond the historic mining at Dukes Reef.
Results include:
- 0.25 metres at 2,006 g/t gold from 66.65 metres and 0.45 metres at 17.11 g/t from 147.35 metres;
- 0.2 metres at 385 g/t from 50.7 metres;
- 0.9 metres at 36.62 g/t from 78.4 metres;
- 1.1 metres at 16.70 g/t from 22.1 metres, 0.8 metres at 12.15 g/t from 43 metres and 0.6 metres at 26.54 g/t from 68.8 metres; and
- 0.85 metres at 134 g/t gold from 1 metre.
Underground drilling continues to target near-term mining and new deeper medium-term discoveries.