Kalgoorlie Gold Mining - $2.3 million placement and $0.5 million SPP to advance the Pinjin project

About this update from Kalgoorlie Gold Mining Limited

WA-focused gold explorer, Kalgoorlie Gold Mining (ASX: KAL) ('KalGold' or 'the Company'), is pleased to advise that it has secured firm commitments to raise a total of $2.3 million (before costs) through the issue of approximately 88.5 million shares (New Shares) via a Two-Tranche Placement at an issue price of $0.026 per share ('Offer'). Commenting on the Placement, Kalgold Managing Director Matt Painter said: 'We are delighted with the demand received in the Placement. I would like to thank our existing shareholders for their ongoing support and welcome new investors to our register.' 'The Placement comes after the announcement of the First Inferred Mineral Resource Estimate for Kirgella Gift and Providence of: 2.34 Mt @ 1.0 g/t Au for 76,400 oz from only 3 meters, with gold mineralisation open in every direction. (Refer to the announcement dated 25 July 2024 ). 1 'KalGold is now well capitalised to complete its obligations for the Farm-in at Pinjin and progress and accelerate its work in the Pinjin area with the aim of significantly growing this initial JORC Code (2012) resource and defining a suite of additional shallow gold resources. Placement The Placement includes a one (1) for one (1) free-attaching unquoted option exercisable at A$0.032 and expiring 24-months from the issue ('Attaching Options'). For every one (1) Attaching Option exercised within the first 12 months of issue, eligible shareholders will receive (1) additional unquoted option exercisable at A$0.06 per option and expiring three (3) years from the date of issue of the Attaching Option ('Bonus Option'). Attaching Options (and subsequent Bonus Options) will be issued subject to shareholder approval at a General Meeting ('General Meeting') expected to be held in September 2024 . Funds raised from the Offer will be applied to: Drilling programs at prospects around Kirgella Gift and Providence, Drilling programs at Wessex; Satisfying farm-in commitments at Pinjin; Grade control style drilling at La Mascotte and general working capital The Company will also offer eligible shareholders in Australia and New Zealand the opportunity to participate in an SPP. Eligible shareholders will be entitled to apply for up to $30,000 of New Shares, free Attaching Options and Bonus Options on the same terms as the Placement ('SPP Securities'), targeting an additional $0.5m in gross proceeds. The Attaching Options under the SPP will be issued subject to a prospectus, which will be lodged in early September 2024 . The Company reserves the right to accept oversubscriptions under the SPP, subject to the ASX Listing Rules and the Corporations Act 2001 (Cth) (Corporations Act). Two Tranches The Placement will be completed in two-tranches as follows: Tranche 1 raising A$1,030,175 (39,622,098 New Shares) pursuant to the Company's placement capacity under ASX Listing Rules 7.1 and 7.1A (23,772,098 under LR7.1 and 15,850,000 under LR7.1A); Tranche 2 to raise A$1,269,825 (48,839,440 New Shares), subject to shareholder approval at a General Meeting expected to be held in early September 2024 , which includes New Shares to be issued to directors under Listing Rule 10.11 and The Placement includes an Attaching Option and Bonus Option (defined above), subject shareholder approval at the General Meeting expected to be held in early September 2024 . The issue of New Shares under Tranche 1 is expected to occur on or around Monday, 5 August 2024 . The Company is preparing the relevant notice of meeting documentation and is undertaking all the necessary steps to convene the shareholder meeting as soon as possible for the issue of the New Shares under the tranche 2 Placement (Tranche 2 Placement Shares) and the issue of the Attaching and Bonus Options. New Shares and all exercised Options will rank equally with the Company's existing shares on issue. The issue price of $0.026 represents a discount of 12.6% to the 5-day VWAP. Palomar Advisory Pty Ltd and Peak Asset Management Pty Ltd acted as Lead Manager and Bookrunner to the Placement ('Joint Lead Managers'). The Joint Lead Managers (or nominees) will receive 4.5 million Attaching Options and 4.5 million Bonus Options each as part of their fees. Share Purchase Plan The Company also intends to offer existing eligible shareholders the opportunity to participate in a nonunderwritten Share Purchase Plan (SPP) to raise an additional $0.5 million . Under the SPP, eligible KalGold shareholders, being shareholders with a registered address in Australia or New Zealand ('Eligible Shareholders') recorded on KalGold's share register as at 5:00pm ( Perth time) on Friday, 26 July 2024 ('Record Date'), will have the opportunity to apply for up to $30,000 of New Shares (SPP Shares), free Attaching Options and Bonus Options without incurring brokerage or other transaction costs. The issue of the free Attaching Options (and subsequent Bonus Options) will be subject to shareholder approval. All SPP shares and Options shall be issued at the same price as the New Shares and Options issued under the Placement ('SPP Issue Price'). The SPP offer period will open on Wednesday, 7 August 2024 and is expected to close at 5:00pm ( Perth time) on Friday, 30 August 2024 . As the SPP is not underwritten, the Company may raise more or less than this amount. If applications received under the SPP is greater than $0.5 million , the Directors in their absolute discretion may decide to accept applications (in whole or in part) that results in the SPP raising more than the $0.5 million subject to compliance with the ASX Listing Rules. The full terms and conditions of the SPP will be set out in the SPP Offer Booklet, which is expected to be released to the ASX and dispatched to eligible shareholders via their preferred method of contact on or around Wednesday, 7 August 2024 . New Shares to be issued under the SPP will rank equally with existing KalGold shares, from their respective date of issue. Contact: Tel: +61 8 6002 2700 (C) 2024 Electronic News Publishing, source ENP Newswire

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