Kingfisher (LON:KGF) Mining Ltd (ASX:KFM) is trading higher after receiving firm commitments to raise $4.25 million for a placement of 10 million new shares at $0.425 per share.
As a show of confidence in the company, KFM’s directors have committed to invest $270,000 (subject to shareholder approval and following the placement) at the placement price and will maintain ownership of 13.6% of the company.
KFM will also complete a loyalty option offer to all eligible shareholders after the issue of the placement shares, with the loyalty option to be listed on the ASX.
Well capitalised
“The interest from investors to participate in our first capital raising after listing on the ASX has been truly overwhelming,” Kingfisher’s executive director and CEO James Farrell said.
“We are now well-capitalised to accelerate our exploration efforts in the Gascoyne region where we have already made a breakthrough rare earth elements discovery, with exceptionally high-grade hard rock mineralisation and broad zones of high-grade clay mineralisation which is part of the same large-scale mineral system.
“We would like to extend our sincere thanks to our shareholders for the ongoing support of the company.
"We look forward to our continued growth through exploration success as we continue with our exploration strategy which is focused on discovery of high-grade rare earths mineralisation in one of the most exciting locations in the world.”
Shares have been as much as 18.69% higher in early trading to $0.54.
Use of funds
Proceeds from the placement will be used to accelerate exploration at KFM’s high-grade hard rock and clay REE discoveries in the Gascoyne region of Western Australia and for general working capital.
The exploration work will include drilling and high-resolution airborne geophysical surveys which are scheduled to commence next month as well as expansion of on-ground exploration activities along the company’s 54-kilometre target corridor.
Ongoing exploration is designed to build on the company’s successful discoveries at the project and will include:
- additional drilling at the Mick Well and MW2 discoveries;
- extension of the high-resolution airborne geophysical surveys; and
- expansion of the ground-based target generation work along KFM’s 54-kilometre target corridor.