KGL capital raise brings in $23 million

The Jervois copper project in Western Australia. Image: KGL Resources.

Australian copper explorer and developer KGL Resources has raised $23.04 million from its one-for-six non-renounceable entitlement offer of fully paid ordinary shares in the company.

KGL is focused on the delineation and development of the high grade resource at the Jervois Copper Project in the Northern Territory and establishment of a world class, low cost copper mine.

KGL managing director Simon Finnis said the project feasibility study was on target for completion in mid-2022.

“The study was extended to allow for potential business case advantages to be investigated and incorporated, including the benefits of the Glencore offtake agreement and the updated Jervois mineral resource,” he said.

The funds raised under the Entitlement Offer will allow the completion of the feasibility study and the continuation of the Front End Engineering Design (FEED).

Based on the outcomes of the study, the funds will also go towards placing orders for long lead time items and commencement of early works.

KGL received valid applications under the offer for 62.27 million new shares, representing about 95.2 per cent of the new shares offered to shareholders.

The applications included participation by KGL’s major shareholders, KMP Investments and Denis Wood (on behalf of his controlled entities).

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