THE BOURSE WHISPERER: Kingston Resources (ASX: KSN) reported receiving binding commitments for a placement of 276 million shares at a price of 1.6 cents per share to institutional and sophisticated investors raising net proceeds of $4.3 million.
Kingston is also offering existing eligible shareholders the opportunity to acquire new shares through a prorata non-renounceable entitlement offer of one share for every six shares held at the same issue price of 1.6 cents per share to raise up to approximately $4 million.
Kingston Resources said it was able to welcome two new substantial shareholders to its register – DELPHI Unternehmensberatung AG and Winchester Investments Group Pty Ltd.
DELPHI is a private German based investment company with investments in a number of Australian mineral exploration and mining companies.
Winchester is an Australian private investment group which already held a non-substantial interest in the company.
At the completion of the placement and entitlement offer both suitors will hold an interest in Kingston of approximately 10 per cent.
Kingston said the funds raised will be used to advance exploration activities at the company’s Misima gold project, as well as at the Livingstone gold project in Western Australia.
“We welcome our new shareholders and in particular DELPHI and Winchester,” Kingston Resources managing director Andrew Corbett said in the company’s announcement to the Australian Securities Exchange.
“We are very encouraged by their support for Misima and their interest in developing the project into a long-term, viable mining operation.
“Their knowledge and understanding of the resources sector is also an important factor.
“Misima is at an exciting point in its development as we drill exploration targets outside the existing resource that have been identified through our structural and geochemical work.
“These areas have not been the focus of any activity for almost two decades and are very prospective targets for Kingston.
“This work has occurred alongside the development of an updated geological model for Misima.
“In the next two quarters we will ramp up the regional drill program targeting satellite deposits at Misima.
“The company will also increase activities at its Livingstone gold project in WA.”