Kalgoorlie Gold Mining (ASX:KAL) has secured firm commitments to raise a total of $1.4 million tom support its new WA gold project acquisitions.
The Placement was well supported and enables the company to systematically explore the new farm-in and acquired tenure at the Pinjin project, where extension of shallow, high-grade gold mineralisation at Kirgella Gift will be a priority.
The company will also offer eligible shareholders in Australia and New Zealand the opportunity to participate in a Share Purchase Plan (SPP). Eligible shareholders will be entitled to apply for up to $30,000 of new shares and free attaching options on the same terms as the Placement, targeting an additional $0.5m in gross proceeds.
We are extremely excited by this acquisition which could ultimately be a company-maker for KalGold,” Managing Director, Matt Painter, said.
“The potential of this new tenement package, in particular the Kirgella Gift prospect where historic drilling has been very promising, cannot be overstated. It offers an opportunity for a significant discovery in one of the most prolific mineralised structures in the entire Eastern Goldfields of Western Australia.
“We are pleased with the strong support in the Placement from new and existing investors and this is a strong endorsement of the quality of the Pinjin Project and the larger KalGold portfolio.
“We are also pleased of offer all shareholders the opportunity to participate in the Share Purchase Plan under the same terms as the Placement.
“The capital raising announced today positions us well for the foreseeable future. We look forward to the results of the initial confirmatory drill program at Kirgella Gift. These are expected shortly. These will be followed by systematic drilling to extend the open, high-grade, shallow gold mineralisation at Kirgella Gift south towards the Providence target.
“The company also looks forward to progressing the outcropping La Mascotte deposit following definition of the first Inferred JORC Resource Estimate in March 2023.”