Funds To Advance Misima Development In PNG
Kingston Resources Limited (ASX: KSN) has secured binding commitments to raise A$12.5 million via a single-tranche institutional share placement to advance its 3.6Moz Misima Gold Project in PNG to the next stage, as the foundation for a substantial new Asia-Pacific gold business.
Alongside the Placement, Kingston Chairman Mick Wilkes has committed to take up A$500,000 worth of shares at the same issue price as the Placement, subject to shareholder approval, for total equity raising proceeds of A$13 million.
The Placement will result in the introduction of a number of new institutions to Kingston’s share register, including both Australian and international funds, and has also received strong support from the company’s existing shareholders.
Funds raised under the Placement will primarily be used to advance activities at the Misima Gold Project in PNG, as well as at the Livingstone Gold Project in WA, including:
- Extensional and in-fill drilling within the existing 3.6Moz Misima Resource;
- Advancing mining studies and environmental studies at Misima;
- $1.65m settlement of the acquisition of remaining Joint Venture interest in Misima, taking Kingston to 100% ownership of Misima;
- Exploration activities at Misima and Livingstone; and
- General working capital.
Canaccord Genuity (Australia) Limited acted as Lead Manager to the Placement.
“We are delighted with the response we have had from investors during the book-build process, which reflects the strong positive sentiment towards the Misima Gold Project following our recently-released Pre-Feasibility Study,” Kingston Managing Director Andrew Corbett said.
“We’re now looking forward to taking the next steps at Misima, advancing work on studies and approvals, and working towards the delivery of updated Resource and Reserve estimates next year.”
“The coming 12 months is set to be an exciting and busy period for Kingston, as Misima moves into the DFS and approvals process, and with continued drilling activity planned to further improve the already compelling Project economics.”
