Kingsland Minerals (ASX:KNG) has received binding commitments to raise $3.6 million to advance its Leliyn Graphite Project in the Northern Territory.
The single-tranche placement has an issue price of $0.32 per new share, representing a 13.5% discount to Kingsland’s last close on 20 June 2023 of $0.37 per share, a 20.4% discount to its 5-day VWAP of $0.402 per share, and a 16% discount to its 15-day VWAP of $0.381 per share.
The settlement of the new shares will occur on or about 29 June 2023.
With Kingsland’s existing cash reverses and the placement, the company says it’s well-funded to execute its planned exploration and development work program at the Leliyn Graphite Project, with $5.5 million in cash on hand post-placement.
These activities will include a reverse circulation (RC) and diamond drilling program within the exploration target in the area, geophysics and drilling to delineate the remaining 15km of 20km outside of the exploration target, technical studies such as metallurgical testwork, a maiden Mineral Resource Estimate, and general working capital.
Commenting on the placement, Kingsland Minerals Managing Director Richard Maddocks says: “We are overwhelmed by the demand for the placement and extremely pleased by the strong support from existing shareholders and new domestic and international institutional investors.
“Attracting such high-quality institutional investors validates the tier-one potential of the Leliyn Graphite Project”
Attracting such high-quality institutional investors validates the tier-one potential of the Leliyn Graphite Project and our proposed exploration and development strategy.
Proceeds of the placement will strengthen Kingsland’s balance sheet and provide a pathway to accelerate the definition of a maiden resource at Leliyn. We look forward to providing continuous newsflow over the coming months, with RC drilling ongoing and several assays pending.”
The company says the placement introduced several new, ‘high-quality’ institutional, sophisticated and professional investors, while also being well-supported by existing ‘significant’ shareholders of Kingsland.
Kingsland Minerals is an exploration company with assets in the Northern Territory and Western Australia. The company’s core focus is currently on exploring the Leliyn Graphite Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Kingsland Minerals Ltd
