Kingston Resources Initiates $8.47 Million Non-Renounceable Rights Issue at $0.035 Per Share

Kingston Resources Announces 1-for-4 Rights Issue Priced at $0.035 Per Share

On 3 July 2026, Kingston Resources Limited confirmed the opening of its non-renounceable entitlement offer to eligible shareholders. Shareholders may subscribe for one new fully paid ordinary share for every four shares held as of the record date at 7:00pm AEST on 30 June 2026. Priced at $0.035 per share, the offer aims to raise approximately $8.47 million before costs, providing significant capital to advance the company’s operational and exploration objectives.

Since the offer is non-renounceable, entitlements cannot be traded or sold, meaning shareholders who do not participate will experience dilution without compensation. This approach is typical among smaller ASX-listed resource firms seeking swift and certain capital raising, especially with an underwriter committed to cover any shortfall.

Argonaut Corporate Finance Fully Underwrites $8.47 Million Entitlement Offer

The entitlement offer is fully underwritten by Argonaut Corporate Finance Limited, ensuring Kingston Resources will secure the targeted $8.47 million irrespective of retail shareholder take-up. This underwriting reduces execution risk and provides assurance to investors regarding the completion of the capital raise.

Argonaut Corporate Finance, a Perth-based advisory and capital markets firm with resource sector expertise, adds institutional credibility to the process. Their involvement, first disclosed in Kingston’s 18 June 2026 company update, signals independent validation of the offer’s terms and planned use of proceeds.

Institutional Placement Raises Approximately $4.4 Million Prior to Rights Issue

Alongside the entitlement offer, Kingston Resources completed an institutional placement issuing 125,714,286 shares at $0.035 each, raising about $4.4 million. This placement, targeted at qualified institutional, sophisticated, and professional investors, closed before the retail offer commenced and forms part of the broader capital raising strategy.

Combining the institutional placement with the entitlement offer’s target suggests total gross proceeds of approximately $12.87 million before costs. Kingston has not provided a consolidated figure in the latest update; investors should consult the prospectus for full details. This dual structure is common for ASX companies aiming to raise capital simultaneously from institutional and retail investors.

25,000-Metre Drilling Program to Support Resource and Reserve Updates

A major use of the raised funds is a comprehensive underground and surface drilling program totaling 25,000 metres. The drilling aims to update Kingston’s Measured and Indicated Resources and target high-priority exploration zones. This significant drilling activity underscores the company’s intent to advance resource definition in the near term.

Enhancing Measured and Indicated Resources is essential for progressing feasibility studies, declaring reserves, and securing financing. The drilling outcomes are expected to be a key catalyst for investor interest, although no specific timeline for results or updated resource estimates has been disclosed.

Processing Facility Expansion Studies to Explore Capacity Increase to 700ktpa

Funds will also support studies into expanding an existing processing facility, with permits already secured to potentially increase throughput to 700,000 tonnes per annum (ktpa). These studies will evaluate the optimal processing rate aligned with underground mining rates, aiming to optimize surface processing capacity for the mine’s life.

The presence of key permits for a 700ktpa increase is notable, as permitting can be a lengthy and uncertain process in mine expansions. The current processing rate and study completion timeline were not specified. Outcomes from these studies will be critical indicators of the project’s long-term production and economic outlook.

Offer Closes on 14 July 2026 — Shareholder Eligibility and Key Dates

The entitlement offer is available to shareholders recorded at 7:00pm AEST on 30 June 2026 with registered addresses in Australia, New Zealand, Hong Kong, Singapore, or the European Union (excluding Austria). The offer closes at 5:00pm AEST on Tuesday, 14 July 2026, unless extended. Eligible shareholders received instructions and personalised entitlement forms via Automic’s online investor portal.

Shareholders outside eligible jurisdictions were notified of their ineligibility to participate, reflecting regulatory compliance complexities. These ineligible shareholders cannot subscribe for shares under this offer.

Top-Up Facility Enables Eligible Shareholders to Apply for Additional Shares

Shareholders who fully subscribe to their entitlement may apply for additional shares up to 100% of their entitlement through the Top-Up Facility. These extra shares are allocated from any shortfall created by shareholders who do not participate.

Allocation depends on shortfall availability, with no guarantee of full allocation for top-up applications. This facility offers investors a chance to increase their holdings at the $0.035 issue price, subject to shortfall share availability.

Additional Uses of Proceeds Include Redundancy, Fleet Demobilisation, and Care and Maintenance

Besides drilling and expansion studies, funds will cover redundancy and fleet demobilisation expenses, as well as care and maintenance costs. These uses suggest Kingston is managing a transitional operational phase, with some activities being scaled back while exploration and development advance.

Care and maintenance programs help preserve infrastructure during operational pauses. The company also noted deferred consideration from the Misima sale as a supplementary funding source alongside the capital raise. Details on the amount and timing of this deferred consideration were not disclosed; investors should refer to the prospectus for further information.

Participation Instructions for Eligible Shareholders Before 14 July 2026 Deadline

Kingston Resources will not issue hard copies of the prospectus or acceptance forms. Eligible shareholders must access personalised forms via Automic’s online portal at https://portal.automic.com.au/investor/home using their Securityholder Reference Number (SRN) or Holder Identification Number (HIN) from their latest holding statement, plus their postcode. Access options include existing Automic accounts, new registrations, and guest access without account creation.

Assistance is available from Automic’s registry on 1300 288 664 (Australia) or +61 2 9698 5414 (international), Monday to Friday from 8:30am to 7:00pm AEST during the offer. Kingston advises shareholders to seek independent advice regarding the offer’s suitability. The immediate share price impact following the offer opening has not been publicly disclosed.

Investor Focus as Kingston Resources Deploys Raised Capital

With the fully underwritten entitlement offer underway, Kingston Resources has largely mitigated funding risk, assuming the offer closes as scheduled on 14 July 2026. Investor attention will likely shift to the commencement and progress of the 25,000-metre drilling program and the timing of initial results, which could significantly impact the company’s resource base.

Processing facility expansion study outcomes will also be critical, as decisions on throughput rates will influence production profiles and capital needs. Combined with updated resource and reserve estimates, these developments will shape Kingston’s project advancement narrative. Additionally, investors should monitor announcements regarding the deferred consideration from the Misima sale, identified as a supplementary funding source alongside the capital raising proceeds.