KGL Resources plans to raise up to $12.4 million to accelerate its exploration program at the Jervois copper project in the Northern Territory.
The junior company will raise the funds through a capital raising via a share placement and with a pro-rate non-renounceable rights issue.
KGL has commitments from a group of sophisticated and institutional investors to place 22.8 million shares at 30 cents each to raise $6.9 million.
The entitlement offer will involve one new share for every 11 shares already held by shareholders to raise up to an additional $5.5 million.
According to KGL, the funds raised will be used for further drilling at the company’s 100 per cent owned Jervois project and for working capital.
KGL chairman Denis Wood said the company had made significant advances in the past 18 months in terms of its drilling success.
The company has also acquired the Unca Creek tenement, was awarded major project status by the NT Government, secured the expansion of its mining lease and finalised the Environmental Impact Statement (EIS).
“With this capital raising, KGL will be able to continue to advance the technical studies, expedite drilling to extend the copper mineralisation across the Jervois project and progress the necessary permitting through completion and submission of its EIS,” Wood said.