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Market Analysis Latest ASX News

Kingsgate [ASX:KCN] Takes $46 Million From Successful Institutional Placement

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By Mahlia Stewart, Tuesday, 28 March 2023

Diversified miner Kingsgate has taken up $46 million from interested shareholders in an institutional placement and plans to use its newfound capital to fund commissioning for plants and facilities.

Gold mining, development, and exploration company Kingsgate Consolidated [ASX:KCN] is celebrating its raising $46 million in capital through its recently executed institutional placement.

The group now has accumulated binding commitments for around 30.7 million new fully paid ordinary shares at an issue price of AU$1.50 per share.

Proceeds will fund the commissioning of Plant 2, working capital costs for stockpile processing, sorting out its repayment options for Taurus Bridge, and perhaps feeding Plant 1’s refurbishment.

With shares now valued at $1.50 each, the group has seen more than a 25% discount on its closing price.

Overall, this brings it down more than 14% in the week, and despite being flat in the year, it’s down 13% so far in 2023:

ASX:KCN Kingsgate Consolidated Stock Chart News 2023

www.tradingview.com

 

Kingsgate secures $46 million through new shares

The miner has today announced the successful raising of $46 million in capital thanks to its successful institutional placement, which has just been finalised.

The group announced it had received binding commitments to issue approximately 30.7 million new fully paid ordinary shares in the company at an issue price of AU$1.50 each share.

Kingsgate says that once the placement settles, it will be spending the proceeds on funding Plant 2 commissioning and working capital costs as the processing of stockpiles re-commence.

It will also be able to provide repayment options for the US$15 million Taurus Bridge Facility and is also eying the possibility of accelerating its refurbishment of Plant 1.

The mining group plans to settle the placement by Thursday, March 30, after which the issuing and allotment of shares will occur, under relevant company listing rules, the following day.

Kingsgate has been supported throughout the placement process by Barrenjoey Markets, which acted as the sole lead manager and bookrunner throughout the process, and also with Thomson Geer as the group’s legal advisor.

Ross Smyth-Kirk, Kingsgate Executive Chairman, commented on the placement:

‘The strong support shown from both new Australian and international investors and existing shareholders in this Placement is a firm endorsement for the Company and its strategy. We are thrilled to be recommencing operations at Chatree and returning to production.

‘We thank shareholders for their long-standing support and look forward to seeing Chatree once again become a meaningful ASX-listed gold producing project.’

 

Kingsgate’s additional Share Purchase Plan

With the placement underway, the group also alerted its shareholders about an additional capital raising aimed at eligible shareholders across Australia and New Zealand through a Share Purchase Plan (SPP).

Investors are invited to apply for up to AU$30,000 of new shares under the SPP, with the issue price matching the placement’s AU$1.50 per new share valuation.

Kingsgate hopes to raise a further AU$10 million (before costs) via the SPP, a capital-raising endeavour that has not been underwritten.

The group says the new shares will rank equally with existing shares, and it may accept oversubscriptions or scale back applications if it feels compelled to do so.

The SPP is expected to open on Monday, 3 April and close at 5.00pm (AEST) on Monday, 24 April.

 

Australia faces big changes — are you prepared?

Australia has serviced 30 years of abundant, robust trade…but that’s now broken, and it’s unlikely to be pieced together the way it once was.

The global supply chain has been twisted — that’s why there’s less on our supermarket shelves, inflation is running rampant, and banks are closing branches.

The change is all around us, and the clues and signs are everywhere.

Jim Rickards, one of the world’s top financial and geopolitical analysts, has joined the dots nobody else has — certainly not the mainstream media.

He says, ‘no one is talking about how this could end the Australian economy’ as we know it, as soon as within the next 12 months.

If you want to know more about the biggest geoeconomic shift of our lifetime, click here for more.

 

Regards,

Mahlia Stewart,

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Mahlia Stewart

Mahlia’s Premium Subscriptions

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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