Strong Support From Major Shareholder
Kingwest Resources Ltd( ASX:KWR) has received firm commitments from professional and sophisticated investors to raise $3 million via a placement.
In addition the company has received a firm commitment from its major shareholder Horizon Minerals Limited (HRZ) to subscribe for 6.25 million ordinary shares at the issue price of A$0.08 per share with one new unlisted option for every two shares subscribed, with an exercise price of A$0.15 and expiry of December 30, 2023.
The issue price per Placement Share of A$0.08 represents a discount of 11% to the last traded price of the Company’s shares on the ASX.
The funds raised from the Placement will be used to continue the company’s strategy of growing the resources at the Menzies Gold Project in Western Australia with extensional drilling, additional Exploration drilling at Goongarrie Gold Project as well as general working capital.
Peloton Capital Pty Ltd acted as the lead manager to the Placement and will receive a 6% fee on all the funds raised under the Placement.
