Australian-based mineral exploration company KGL Resources has announced a capital raising to raise up to $3 million by way of two for nine pro data non-renounceable entitlement offer, fully underwritten by the company’s Chairman Denis Leslie Wood.
“Eligible shareholders will be able to apply for additional shares through a top-up offer,” the company said in a statement to the ASX.
“The offer price for the Entitlement Offer is $0.095 per share.”
According to KGL, funds raised through the capital raising will be used for the exploration and development of the company’s Jervois Copper-Silver Project in the Northern Territory as well as for corporate overheads, working capital and offer costs.
The principal terms of the non-renounceable rights issue are as follows:
- Two new fully paid ordinary shares for every nine shares held,
- An issue price of 9.5 cents per share, representing a discount of 5% to the closing price of KGL shares on 24 December 2015 of $0.10 (being the last trading day before announcement of the Entitlement Offer) and a discount of 4.13% to the Theoretical Ex-Rights Price (TERP).
The company said that detailed information regarding the Entitlement Offer will be sent to shareholders in accordance with the timetable below:
- Record date for Entitlement offer (5 January 2016).
- Information booklet, and entitlement and acceptance form despatched (8 January 2016).
- Entitlement Offers opens (8 January 2016).
- Closing date for acceptances under Entitlement Offer (22 January 2016).
- Announcement of results of Entitlement Offer and under-subscriptions (28 January 2016).
- Settlement of new shares under the Entitlement Offer (29 January 2016).
- Allotment of new shares issued under the Entitlement Offer (1 February 2016).
- Despatch of holding statements for new shares issued under the Entitlement Offer (1 February 2016).
- Normal ASX trading for new shares issued under the Entitlement Offer commences (2 February 2016).