KINGSTON Resources Ltd secures K33mil equity to advance Misima Gold project in PNG

 KINGSTON Resources Ltd has secured binding commitments to raise AU$12.5 million (K33.2mil) through a single-tranche institutional share placement to advance its Misima gold project in Papua New Guinea to the next stage.

It announced to the market recently that the move was the foundation for a substantial new Asia-Pacific gold business.

The company said alongside the placement, chairman Mick Wilkes had committed to take up AU$500,000 (K1.3mil) worth of shares at the same issue price as the Placement, subject to shareholder approval, for total equity of AU$13 million (K34.5mil).

Under the placement, the company would issue 48,076,923 million shares at AU$0.26 (K0.69) per share (issue price) to institutional and sophisticated investors to raise gross proceeds of AU$12.5 million.

The issue price represents an 11.2 per cent discount to the 10-day volume weighted average price.

The placement would result in the introduction of a number of new institutions to Kingston’s share register, including both Australian and international funds, and had received strong support from the company’s existing shareholders.

Funds raised under the placement would be used to advance activities at the company’s flagship Misima gold project in Papua New Guinea, as well as at the Livingstone gold project in Western Australia, including:

  • Extensional and in-fill drilling within the existing 3.6Moz Misima Resource;
  • Advancing mining studies and environmental studies at Misima;
  • AU$1.65 million (K4.38mil) settlement of the acquisition of remaining Joint Venture interest in Misima, taking Kingston to 100 per cent ownership of Misima;
  • Exploration activities at Misima and Livingstone; and,
  • General working capital.

Managing director Andrew Corbett said: “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.

“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 (definitive feasibility study) and approvals process, and with continued drilling activity planned to further improve the already compelling project economics.”


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