Kingston Resources Limited (ASX:KSN) has conducted a capital raising of up to $8.4 million to progress its key gold projects in Papua New Guinea (PNG) and Western Australia, including the completion of a pre-feasibility study (PFS) on its flagship 3.2 million ounce Misima Gold Project in PNG.
The company has received binding commitments for a share placement comprising the issue of 40 million shares at an issue price of 16 cents per share to institutional and sophisticated investors, raising gross proceeds of $6.4 million.
Kingston will also launch a Share Purchase Plan (SPP) providing existing eligible shareholders with the opportunity to participate in this milestone capital raising on the same terms as the share placement.
Management noted that a number of new institutional shareholders are now on its register following the placement, and there was also strong support from existing shareholders.
Funds raised will be used to advance the Misima Gold Project and to accelerate exploration at the Livingstone Gold Project in Western Australia.
PFS a key goal in 2020
More specifically, the proceeds will be applied to the PFS, advancement of approvals and expansion drilling at Misima, with the latter aimed at further expanding the recently upgraded resource.
On this note, managing director Andrew Corbett said, “The rest of 2020 will be exciting for Kingston shareholders as we work towards the completion of the PFS and reporting a maiden Ore Reserve at Misima.
‘’Following the significant structural work completed earlier in 2020 we are also excited to get back into drilling the Livingstone Project in Western Australia, with the objective of delineating a maiden JORC Mineral Resource at Kingsley.”
Kingston will also be conducting exploration drilling at the 75% owned Livingstone Gold Project where high-grade mineralisation has historically been mined.
Management has strengthened the balance sheet further through the sale of an historical gold royalty established in 1992 over a number of tenements held by RNC Minerals within the Higginsville gold operations to Vox Royalty Corp.
The total consideration is $650,000, of which $350,000 will be settled in cash and $300,000 in Vox Royalty shares, a group with a portfolio of 36 royalties and streaming assets, and one of the fastest-growing companies of its kind.