Kingston Resources Limited (ASX: KSN) is a mineral exploration company. The company is focused on the production of gold and lithium. KSN holds a portfolio of major gold and copper projects in the Gawler Craton region of South Australia.
On 3rd May 2019, KSN announced that it has received commitments for placement of 276 million shares at $0.016 per share, raising net proceeds of $4.3 million. The existing eligible shareholders will be entitled to acquire these shares on a pro-rata basis of 1 share for every 6 shares held by them, at a price of $0.016 per share.
The company also saw addition of two new substantial shareholders to its roster, Delphi Unternehmensberatung AG and Winchester Investments Group Pty Ltd.
The funds raised from this offer will be used for the enhancement of the Misima Gold Project and the Livingstone Gold Project.
In its Corporate Presentation, the company laid down details of two of its most advanced exploration projects, the Misima and Livingstone Gold projects, respectively. KSN acquired management of Misima Gold Project in November 2017, and the project is located in the Louisiade Archipelago of Milne Bay Province. This project boasts of 4Moz of low cost, highly profitable, production over 15-year mining history under Placer. The project has high potential, and drill rates have almost tripled since Sep 2018.
The Livingstone Gold project is located 140km NW of Meekatharra in Western Australia over a spread of 220km. The 2018 drilling campaign include 4m @ 76.25 g/t Au from 88m in KLAC206 and 28m @ 2.26 g/t Au from the surface. The project has a good potential.
As a result of the issue of new shares, Chairman Anthony Wehby stated that the focus lies strongly on the two major projects and the company has improved significantly in understanding the project opportunities. The entitlement has increased to approximately 75% of the project (up from 49% at the last capital raising). The company has designed its exploration and drilling programs through to the end of 2019, and also advanced work on a preliminary development analysis.
Precisely on 5th June 2019, issued under the Entitlement Offer, the allotment of new shares will take place. The new capital structure of the company was provided, and is as follows:
Source: Company Report
The company notified its shareholders about the entitlement offer of the newly issued shares and declared that the offer would close at 5:00 pm (Sydney time) on Wednesday, 29 May 2019 and payment must be received by that time. From May 30th, the new shares will start to trade on a deferred settlement basis.
In case one is ineligible shareholder, no offer is being made to them through the offer document prepared by Kingston in relation to the entitlement offer.
To its option holders, KSN made an announcement stating that if the option holders wish to participate in the new entitlement offer, they should seek advice from their professional adviser and then exercise their options.
Share Price Information:
On the technical front, The shares of KSN closed the day’s trade at A$0.017, and the stock has traded down by 10.526% as of 3rd May 2019 compared to the previous closing of A$0.019. YTD return of the stock stands at 18.75%.
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