Announces $3 Million Capital Raising
Announces $3 Million Capital Raising
Brisbane, Dec 29, 2015 AEST (ABN Newswire) - KGL Resources Limited (ASX:KGL) is pleased to announce a capital raising to raise up to $3 million by way of a two for nine pro rata non-renounceable entitlement offer, fully underwritten by Denis Leslie Wood (Entitlement Offer).

Eligible shareholders will be able to apply for additional shares through a top-up offer.

The offer price for the Entitlement Offer is $0.095 per share.

Funds raised through the capital raising will be used for the exploration and development of KGL's Jervois Copper-Silver Project in the Northern Territory as well as being applied to corporate overheads, working capital and offer costs.

The principal terms of the non-renounceable rights issue are as follows:

- Two (2) new fully paid ordinary shares for every nine (9) 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 TERP.

Use of funds
---------------------------------------------------------
Source of funds                              $3m raising
Cash on hand December 2015                   $1.4 million
Funds raised after costs                     $3 million
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Total funds available                        $4.4 million
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Use of funds
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Exploration                                  $2.8 million
Project development
(follow up drilling, EIS and other studies)  $0.3 million
Working capital                              $1.3 million
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Total budget                                 $4.4 million
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Key dates

Detailed information regarding the Entitlement Offer will be sent to shareholders in accordance with the timetable below.

Activity Date

- Record date for Entitlement Offer (7:00pm Brisbane time): 5 January 2016

- Information booklet, and entitlement and acceptance form despatched: 8 January 2016

- Entitlement Offer opens: 8 January 2016

- Closing date for acceptances under Entitlement Offer (5:00pm Brisbane time): 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

To view the Capital Raising Presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-899868.pdf

To view the Entitlement Offer Cleansing Notice, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-899879.pdf

To view the Notice to Option Holders, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-899882.pdf

To view the Letter to Eligible Shareholders, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-KGL-899889.pdf


About KGL Resources Ltd

KGL Resources (ASX:KGL)KGL Resources (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.

   


Contact

KGL Resources Ltd
Simon Milroy MD
T: +61 7 3071 9003
E: info@kglresources.com.au
WWW: www.kglresources.com.au



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