KGL Resources (ASX:KGL) has completed its 1-for-1.29 non-renounceable entitlement offer, raising $120 million at $0.20 per share.
The entitlement offer closed on Wednesday at 5pm Sydney time and forms part of a broader $300 million equity raising, including a conditional $180 million placement subject to shareholder approval.
KGL’s largest shareholder, KMP Investments, supported the offer by pre-committing to its full entitlement. Meanwhile, existing institutional investors provided $17 million in pre-commitments.
The company received valid applications for 333.0 million shares, raising $66.6 million under the entitlement offer.
The remaining 264.6 million shortfall shares, representing $52.9 million, will be issued under a shortfall offer pursuant to the underwriting agreement announced on 25 June 2026.
KMP Investments will receive 41.0 million shortfall shares under its sub-underwriting agreement. These shares increase KMP’s ownership in KGL to 36.2% immediately following settlement.
KGL will participate in the conditional placement only to maintain its 36.2% shareholding, subject to shareholder approval at an extraordinary general meeting on 30 July 2026.
“KMP’s allocation in the shortfall offer means we will not need to issue additional shares under the conditional placement to achieve KMP’s maximum shareholding,” the company says.
The company expects to issue new shares under the entitlement offer on 28 July 2026 and commence trading on a normal settlement basis on 29 July 2026.
Argonaut Securities acted as global coordinator, joint lead manager, and joint bookrunner to the equity raising alongside joint underwriter Argonaut Corporate Finance.
Bell Potter Securities served as joint underwriter, joint lead manager, and joint bookrunner, while Commonwealth Securities acted as co-manager.
The equity raising provides KGL with capital to advance its operations, though the company has not disclosed specific use of funds in this announcement.
The conditional placement remains subject to shareholder approval at the upcoming extraordinary general meeting.
KGL Resources is a copper developer advancing its fully permitted Jervois Copper Project in the Northern Territory, which also hosts significant silver and gold credits.
Write to JC Villarba at Mining.com.au
Images: KGL Resources
