Kingston Resources Ltd (ASX:KSN) has opened a fully underwritten share purchase plan (SPP) to raise up to $1 million and take recent capital-raising initiatives to $6.5 million.
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, will each be entitled to apply for up to $60,000 of additional shares at $0.085 per share without incurring brokerage or transaction costs.
In addition, for every two shares issued under the SPP, eligible shareholders will also receive one unlisted option exercisable at $0.14 per option at any time on or before July 31, 2025.
Fully underwritten
Significantly for Kingston Resources, the SPP is jointly underwritten to $1 million by Ord Minnett Limited and BW Equities Limited.
This, in turn, is sub-underwritten to A$1 million by the company’s major shareholder and sophisticated investor Delphi Unternehmensberatung Akteingesellschaft.
Use of funds
Funds raised under the offer 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 general working capital.
The company may accept SPP oversubscriptions of up to $1 million at its absolute discretion.
Implementation of the SPP will be subject to the approval of Kingston shareholders at an Extraordinary General Meeting (EGM), scheduled for August 14, 2023.
The issue price of the new shares and terms of the options under the SPP are the same as those offered under the company’s institutional placement announced to ASX on June 27, 2023.
READ: Kingston Resources poised for growth as Mineral Hill enters new phase; plans $6.5 million capital raising
The SPP follows a two-tranche A$5.5 million institutional placement late last month with the total of $6.5 million to boost the company’s strong cash position, which stood at $11.5 million at the end of May 2023.
Funds to progress growth plans
On completing the placement, Kingston managing director Andrew Corbett said: “With the launch of the placement and SPP, alongside existing cash and debt facilities, we will now have the funds to progress Kingston’s growth plans in earnest.
“The company is very pleased with the level of support from our existing shareholders and we are also pleased to welcome several new quality institutional investors to the Kingston register through their participation in the placement transaction.
“We remain committed to working closely with Lachlan Shire, the Wiradjuri People and our local community in Condobolin to identify opportunities for mutual growth and to increase prosperity and well-being across the region.”