Kingston Resources (ASX:KSN) has secured firm commitments for a $12.9 million capital raising to fund a 25,000m drilling program at its Mineral Hill operation in New South Wales.
The capital raising comprises a $4.4 million placement and an $8.5 million fully underwritten entitlement offer, both priced at $0.035 per share.
The company will emerge with $32.3 million in cash following completion, including a $10 million deferred payment due 11 July 2026 from the sale of its Misima Gold Project to Ok Tedi Mining Limited.
Managing Director Andrew Corbett says the drilling program represents the ‘first large-scale exploration’ at Mineral Hill since the 1980s and will target resource and reserve growth alongside plant expansion studies.
“Owning the only polymetallic plant in the south Cobar region with the ability to produce gold doré with expansion potential represents significant strategic value for our shareholders,” Corbett adds.
The company recently ceased open pit mining at Pearse South and delayed underground production, prompting the strategic shift toward exploration and resource expansion.
Kingston’s processing facility at Mineral Hill holds permits to process up to 700,000 tonnes per annum, compared with its current 350,000tpa capacity.
The drilling program will focus on extensional underground drilling at the Southern Ore Zone and Jack’s Hut, where mineralisation is well-defined, plus surface drilling at the newly identified Parker’s Hill East target.
Kingston’s largest shareholder, Farjoy, has committed $1.6 million to the placement and $1.7 million to the entitlement offer, increasing its stake to approximately 30.1% should no other shareholders participate in the entitlement offer.
The entitlement offer is underwritten by Argonaut Corporate Finance and will be available to eligible shareholders in Australia, New Zealand, the European Union, Hong Kong, and Singapore. The record date is set for 30 June 2026.
Mineral Hill hosts a JORC resource of 9.98 million tonnes @ 0.93 grams per tonne gold, 0.97% copper, 1.42% lead, 0.98% zinc, and 28 g/t silver.
The operation also contains a probable ore reserve of 700,000 tonnes @ 1.40g/t gold, 0.80% copper, 1.90% lead, 1.60% zinc, and 20g/t silver.
Kingston Resources is an Australian gold and copper producer focused on building a mid‑tier polymetallic business through the expansion of its Mineral Hill mine in New South Wales.
Write to JC Villarba at Mining.com.au
Images: Kingston Resources
