- KGL Resources (KGL) has received $2.11 million in funding from KMP Investments
- KMP will be issued more than 9 million shares at a price of 23 cents each
- This funding brings the total amount raised to $5.94 million – of the $8.2 million target
- KGL’s share price is steady with shares currently trading for 23 cents apiece
KGL Resources (KGL) has received $2.11 million in funding from KMP Investments.
KMP will be issued 9,195,224 shares at a price of 23 cents, with KGL utilising its right to place part of the shortfall from KGL’s recent entitlement offer within three months of the closing date.
This will be at a price no less than the issue price of 23 cents as detailed in the entitlement offer booklet.
This brings the total amount raised under the entitlement offer and subsequent shortfall placement to $5.94 million.
“The Board is very pleased that the entitlement offer process has now raised more than $5.9 million of the $8.2 million target,” Executive Chairman Dennis Wood commented.
“All of the top 10 shareholders have participated in this capital raising along with 267 other shareholders,” he added.
According to KGL, some money will be used in advancing the Jervois Copper Project to development in 2020.
The Jervois Base Metal Project is located on existing mining leases, some 380 kilometres northeast of Alice Springs.
Known resources at Jervois are spread across multiple prospects that extend along a 12-kilometre strike length in the shape of a ‘J’.
Several of the prospects have the potential for both open pit and underground mining.
However, KGL has concentrated recent exploration on the Rockface and Reward prospects where new mineralised zones of increasingly high grade.
Downhole electromagnetic (DHEM) surveying identified new drill targets from which drilling has produced high-grade intersections and extensive mineralised zones.
More DHEM surveys in the new drill holes have, in turn, identified new target areas with drilling resulting in further high-grade mineralisation.
KGL’s share price is steady today with shares trading for 23 cents apiece at 1:06 pm AEDT.