Kingston Resources Ltd (ASX:KSN) has taken total recent capital raising proceeds to $6.5 million after completing a strongly supported share purchase plan (SPP) for $1 million.
The $6.5 million when added to the company’s cash in hand of $11.54 million at the end of May 2023 means Kingston is well funded to progress its growth plans centred on the Mineral Hill polymetallic project in central New South Wales.
There were SPP applications received from shareholders totalling $871,000 which will result in the issue of 10,247,017 shares at an offer price of $0.085 per share.
READ: Kingston Resources opens fully underwritten $1 million SPP following $5.5 million placement
This was the same issue price as the two-tranche institutional placement announced on June 27, 2023, and which raised A$5.5 million.
Each SPP investor will also be allocated an attaching option on a 1-for-2 basis, at a strike price of $0.14 per share with an expiration date of July 31, 2025.
Fully underwritten
The SPP was jointly underwritten to A$1 million by Ord Minnett Limited and BW Equities Limited, and sub-underwritten to A$1 million by Delphi Unternehmensberatung Akteingesellschaft, the company’s major shareholder and sophisticated investor.
There will be 1,517,647 shortfall securities issued to the sub-underwriter with a total value of $129,000, along with 758,823 unlisted attaching options.
Eligible shareholders with registered address on the company share register in Australia, New Zealand or Germany as at 7 pm (Sydney time) on Monday, June 26, 2023, were entitled to apply for up to $60,000 of additional shares without incurring brokerage or transaction costs.
READ: Kingston Resources poised for growth as Mineral Hill enters new phase; plans $6.5 million capital raising
Use of funds
Funds raised will be used for the refurbishment of the processing plant, underground infrastructure re-access and open pit pre-production waste stripping at the Mineral Hill operations in central New South Wales and for general working capital.
The capital raising funds come as the company is gearing up for a new phase of growth on unveiling an updated Life of Mine (LOM) plan for Mineral Hill.
This LOM plan forecasts production to the middle of 2027, with a total output of 123,000 ounces of gold equivalent payable while the company will also transition from gold and silver ore production to add gold, copper, lead and zinc concentrates by the end of 2024.