- KGL Resources (KGL) has raised an additional $3.64 million after raising over $9.57 million in an entitlement offer in March
- The extra proceeds were raised through an offer of 5.2 million shortfall shares, issued at 70 cents per share
- KGL Resources will use the money to fund the current drilling program across the company’s various exploration targets
- The company expects to complete allotment of shortfall shares on May 20, with ordinary trading to commence on May 21
- KGL Resources is up 3.65 per cent and trading at 71 cents per share
KGL Resources (KGL) has raised an additional $3.64 million, after raising over $9.57 million in an entitlement offer in March.
In mid-March 2021, the company completed an entitlement offer, after raising $9,574,137 in proceeds before costs. This in itself followed on from a $12 million strategic placement completed in February, which KGL hoped would help to fund enhancements of its Jervois Copper Project in the Northern Territory.
During the entitlement offer, KGL received valid applications for approximately 22,795,564 new shares, at an issue price of 42 cents per share.
28,024,573 new shares were offered to shareholders, meaning that the number of shares applied for represented roughly 81.3 per cent of the available shares.
KGL Resources has now placed the shortfall shares from the entitlement offer, in a shortfall offer to institutional and sophisticated investors. 5.2 million shares were offered to investors at 70 cents each, a 66 per cent premium to the entitlement offer’s share price.
The $3.64 million in extra raised proceeds will primarily be used to fund KGL Resources’ current drilling program. The company is conducting drilling across its extensive portfolio of highly prospective exploration targets.
KGL Resources expects to complete the allotment of its shortfall shares on May 20, 2021. The company anticipates that the shortfall shares will commence ordinary trading on May 21, 2021.
KGL Resources is up 3.65 per cent, trading at 71 cents per share at 1:19 pm AEST.