Microcap explorer Kula Gold (ASX:KGD) has tapped investors for $400,000 through a share placement, with company directors opting to contribute $86,000 to the raise.
The company plans to put the funds towards a ‘low-cost, high value-add’ exploration program at the Boomerang gold prospect within its Marvel Loch Project in Western Australia.
Under the placement, Kula will issue 50 million new shares at $0.008 per share — the equivalent of its 15-day volume-weighted average price prior to the announcement of the raise.
The company says it will issue 39.25 million of these shares under its existing placement capacity — meaning without the need for shareholder approval. The settlement of this portion of the raise is slated to take place on or around 6 March 2024.
Meanwhile, subject to shareholder approval, Kula will issue the remaining 10.75 million shares to directors following a scheduled Annual General Meeting in May.
The Marvel Loch project lies within the ‘historically rich’ Southern Cross Goldfields region in Western Australia, where Kula also owns the Southern Cross Lithium, Rankin Dome Rare Earths, and Westonia Gold Projects.
Further to these assets, Kula owns a string of gold, lithium, copper, nickel, platinum group elements, halloysite, and kaolin projects across the state.
The company’s capital raise comes just one week after it announced the start of UltraFine+ (UFF) soil sampling across the Boomerang prospect within Marvel Loch.
Kula had just under $400,000 cash and cash equivalents at hand at the end of December 2023, according to its latest quarterly report.
Images: Kula Gold
