Total
0
Shares
King River Resources (ASX:KRR) - Chairman, Anthony Barton
Chairman, Anthony Barton
Source: Business News
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Minerals explorer King River Resources (KRR) has offered shareholders a security purchase plan (SPP) aiming to raise over $12.3 million
  • The company says the money will be used to fund ongoing project development and exploration, and for general working capital
  • Shares will be offered at 3.3 cents each, with one free attaching option exercisable at six cents for every three shares purchased
  • The company’s reasons for the capital raise are somewhat enigmatic — with no specifics offered as to which projects will be funded or for what purpose
  • The company’s share price has more than halved since its recent high on May 20, and now sits just below the SPP price
  • It’s suddenly looking like a mountain to climb for KRR if the deal requires shareholder approval and the offer is far from tempting
  • King River has taken a dive today, trading 15.8 per cent lower at 3.2 cents per share

Minerals explorer King River Resources (KRR) has offered shareholders a security purchase plan (SPP) aiming to raise over $12.3 million.

The company says the money will be used to fund ongoing project development and exploration, and for general working capital.

The offer

Shares will be offered at 3.3 cents each, with eligible shareholders able to purchase up to $30,000 worth of shares.

The offer will also include one free attaching option for every three shares issued exercisable at six cents and expiring on July 31, 2022.

King River will hold a shareholder meeting as soon as possible before the proposed open date of July 7 as the offer requires shareholder approval to go ahead.

The price of 3.3 cents represents a 20 per cent discount to the five-day volume-weighted average price and an 18.5 per cent discount to the last closing price on June 22.

The money

The company’s stated reasons for the capital raise are somewhat enigmatic — with no specifics offered as to which projects will be funded or for what exact purpose.

Either the company is having some liquidity issues as it continues testing and development for the Speewah project pre feasibility study (PFS), or the company is offering its shareholders a chance to buy in before an expected boom. Or maybe there’s some other reason?

Without engaging in pure conjecture, it suffices to say it’s not often an attempted $12 million capital raise comes with such scant justification.

The company’s last release seemed to show progress at Speewah without mentioning funding speedbumps, so the current situation is a little curious.

The company’s share price has more than halved since its recent high on May 20, and now sits just below the SPP price.

It’s suddenly looking like a mountain to climb for KRR if the deal requires shareholder approval and the offer is far from tempting.

Maybe positive progress on the Speewah PFS might turn things around.

King River has taken a dive today, trading 15.8 per cent lower at 3.2 cents per share as at 1:35 pm AEST.

KRR by the numbers
More From The Market Herald
Aeris Resources (ASX:AIS) - Executive Chairman, André Labuschagne

" Aeris Resources (ASX:AIS) shares fall following soft quarterly production figures

Junior miner Aeris Resources (AIS) tumbled on the ASX today after the company’s latest quarterly report revealed soft quarter-on-quarter copper and gold production.

" Mamba Exploration (ASX:M24) to expand Copper Flats on surface sample results

Mamba Exploration (M24) is planning to double the size of its Copper Flats project in Western Australia.
Caeneus Minerals (ASX:CAD) - CEO, Robert Mosig

" Caeneus Minerals (ASX:CAD) updates market on Roberts Hill assays

Caeneus Minerals (CAD) has updated the market regarding the assay results from the Roberts Hill Project.
West African Resources (ASX:WAF) - Executive Chairman, Richard Hyde

" West African Resources (ASX:WAF) receives firm commitments for $126m placement

West African Resources (WAF) has received firm commitments to raise $126 million.