Kingston Resources (ASX:KSN) has tapped investors for $13.5 million through an institutional placement and entitlement offer.
The institutional component raised about $8.8 million through an $8.1 million private placement and a $730,000 accelerated institutional component of the entitlement offer.
The outstanding $4.7 million will be raised from the retail component of the entitlement offer, which is fully underwritten by German investment firm Deutsche Balaton Aktiengesellschaft. The former is an associate of Delphi Unternehmensberatung Akteingesellschaft, which is an existing shareholder and a sophisticated investor of Kingston.
Kingston, which has a $38.84 million market capitalisation, says the capital raise will result in the issue of over 135.7 million shares at a price of $0.065 per share.
Under the entitlement offer, eligible shareholders had the opportunity to subscribe for one new share for every six shares held at 7pm (AEDT) 3 April 2024 at the same price as the placement. The retail entitlement offer is scheduled to close at 5pm (AEST) 8 May 2024.
New shares under the retail entitlement offer are expected to be issued on 15 May 2024.
Shareholders who took up their full entitlement can also participate in a shortfall facility by applying for new shares in excess of their entitlement.
Kingston Resources is currently producing gold from its Mineral Hill Gold and Copper Mine in New South Wales and is developing the 3.8 million ounce Misima Gold Project in Papua New Guinea.
Write to Adam Drought at Mining.com.au
Images: Kingston Resources
