PERTH (miningweekly.com) – ASX-listed KGL Resources will raise up to A$6.5-million through a share placement to fund exploration work at its Jervois copper project, in the Northern Territory.
Some 21.67-million new shares will be issued at a price of 30c each, to raise the funds.
KGL on Tuesday said that 12.7-million shares will be placed with Marshall Plenty, raising A$3.8-million, with a further 5.6-million issued to shareholder KMP Investments for a further A$1.7-million.
A further 3.3-million shares, worth A$1-million, will be issued to the ASM Connaught House Fund.
“Investors can look forward to strong news flow in the months ahead as we apply the funds to high impact infill drilling programmes at Reward and Rockface to further upgrade the mineral resource classification and to estimate an ore reserve to support the financing initiatives for the development of the Jervois project,” said KGL chairperson Denis Wood.
“These funds will support the continued retention of the services and expertise of the two drill rigs and crews currently on site, given their involvement in last year’s infill drilling programme.”
Drilling will also be undertaken to establish a sustainable water source, said Wood.