THE BOURSE WHISPERER: Kibaran Resources (ASX: KNL) showed that money talks when projects walk the walk with the announcement it has received firm commitments to raise $4.1million through an equity placement.
In addition, a Share Purchase Plan is to be offered to all eligible shareholders on the same terms as the Placement to raise $1 million.
The heavily oversubscribed Placement, lead managed by Argonaut, is being made to existing and new sophisticated and institutional shareholders.
The Placement consists of 24.4 million new shares to be issued at a price of 17 cents per share to raise total funds of just under $4.15 million.
Kibaran indicated the funds raised from the offer and SPP will assist the company in the continued development of its 100 per cent-owned Epanko graphite project.
The funds will be put towards the completion of a bankable feasibility study, which is currently underway at Epanko, the ordering of long lead items and provide working capital through to a decision to mine.
“This very pleasing result of the Placement will enable Kibaran to rapidly progress its flagship Epanko graphite project,” Kibaran Resources executive director Andrew Spinks said in the company’s announcement to the Australian Securities Exchange.
“The exceptional demand for participation in the Placement highlights that investor interest remains strong for quality graphite companies and is recognition of Kibaran’s advanced technical progress, binding off-take agreement and the exceptional investment value the company represents.
“Whilst we are pleased with new institutional and sophisticated investor support, the SPP gives all existing shareholders the opportunity to take up further shares at the same price as the Placement and we look forward to their ongoing support.”