KGL Resources Limited (ASX:KGL) (KGL or Company) is pleased to announce a proposed 4 for 15 pro-rata traditional non-renounceable entitlement offer of fully paid ordinary shares in KGL (New Shares) to raise up to approximately $15.1 million (Offer).
The Offer is not underwritten and is subject to a minimum raise condition of $6 million. KGL's major shareholder, KMP Investments Pte. Ltd., has committed to take up their entitlements in full, which would provide funding of $4.8 million
The Company plans to use the funds in accordance with its strategic objectives 1. Position the Company to commence Production to coincide with Chronic Copper Shortfall External headwinds including macroeconomic and funding risks, supply chain constraints, labour market shortages and balanced copper demand has provided KGL the opportunity to continue to refine the project and improve confidence in the Mineral Resource. The Market uncertainties are abating and KGL's goal is to be in a position to commence production in 2027. Feasibility Study Update due Q3/Q4 2. Continue Drill Plans to Extend the life of the project Current drilling campaigns are aimed around and within the existing Mineral Resource. The focus is to increase the quality and size of the resource. Recent drilling announcements continue to show the prospectivity of Jervois. Further holes are planned at Reward Deeps, Marshall and Rockface. 3. Undertake exploration at Depth Over the years, geophysical studies have indicated magnetic and gravity anomalies at depth. Recent focus has been on the large anomaly under the southern end of the J structure near Rockface. Funds from the Entitlement offer will be used to complete the inversion study, defining further targets in this area and undertake one further deep hole based on this modelling.
Further information
The timetable above is indicative only and may change. The Company may amend any of these dates and times without notice, subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws. In particular, the Company reserves the right to extend the closing date for the Offer, to accept late applications under the Offer (either generally or in particular cases) and to withdraw the Offer without prior notice. Any extension of the closing date for the Offer will have a consequential effect on the issue date of New Shares. The commencement of quotation of New Shares is subject to confirmation from ASX. Cooling off rights do not apply to an investment in New Shares. You cannot withdraw your application once it has been accepted. Eligible shareholders wishing to participate in the Offer are encouraged to submit their entitlement and acceptance form as soon as possible after the Offer opens to ensure their application is received by the Company's share registry in time.
Contact:
Tel: (07) 3071 9003
Fax: (07) 3071 9008
Email: info@kglresources.com.au
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