WA-focused gold explorer, Kalgoorlie Gold Mining (ASX: KAL) has obtained significant interest in its successfully completed Share Purchase Plan (SPP).
The SPP was oversubscribed, with the company receiving valid applications for 22,812,500 shares raising a total of $730,000.
Due to the overwhelming support received by Shareholders, the Board has exercised its discretion to accept all valid applications in full to accommodate for all applications, rather than scaling back applications in accordance with the Offer Booklet dated 6 June 2023
The SPP was announced on Friday, 24 May 2023 in conjunction with a A$1.4 million institutional placement (Placement). The SPP was offered to eligible shareholders to raise approximately A$500,000, with each eligible shareholder allowed to subscribe for up to A$30,000 of new ordinary shares in the company at a price of A$0.032 per share, equivalent to the issue price under the Placement.
Funds raised from the SPP, together with the funds raised under the Placement will be used to undertake systematic exploration within the Pinjin Project and the larger KalGold portfolio.
Subject to shareholder approval at the Meeting, investors under the SPP will also be invited to apply under a separate prospectus for one free attaching option for every New Share subscribed for in the SPP, with each option having an exercise price of $0.06 and expiring two years from the date of issue.
The SPP Options will be offered under a separate option offer prospectus which will also be sent to participants in the Placement who will also be offered one free attaching option for every Share subscribed for in the Placement, with each option having the same terms as the SPP Options.
Director participation in the SPP amounted to $46,000 and represented 6.3% of overall subscriptions.
Issue of shares and options
The SPP Shares are expected to be issued on Tuesday, 4 July 2023, and to commence trading on the ASX on Wednesday, 5 July 2023. Holding statements are expected to be dispatched to successful applications on Wednesday, 5 July 2023. KalGold intends to issue the SPP Options shortly after the Meeting.
We would like to thank the many shareholders who applied to participate in the SPP. Consistent with the strong interest in the recent Placement, there was also strong demand from existing retail shareholders for the shares offered under the SPP,” Managing Director Matt Painter said.
“We are pleased with the strong support from existing shareholders and this is a strong endorsement of the quality of the Pinjin Project and the larger KalGold portfolio. The Funds raised from the Placement and SPP positions the company strongly for the foreseeable future.”
