Western Australia-focused gold explorer Kalgoorlie Gold Mining announced plans to raise $2.8 million to accelerate its work at the Pinjin Project.
The capital raising will be carried out through a two-tranche placement worth $2.3 million and a share purchase plan targeting an additional $500,000.
Kalgoorlie Gold Mining's Managing Director, Matt Painter, expressed satisfaction with the level of investor interest. "We are delighted with the demand received in the placement. I would like to thank our existing shareholders for their ongoing support and welcome new investors to our register."
The placement involves issuing approximately 88.5 million shares at 2.6 cents each.
Shareholders will also receive an unquoted option for every share, exercisable at 3.2 cents and expiring in 24 months.
An additional bonus option, exercisable at 6 cents and expiring in three years, will be granted if the initial option is exercised within 12 months.
The funds from this capital raising will be used to continue drilling programs at Kirgella Gift, Providence, Wessex, and La Mascotte, as well as to meet farm-in commitments at Pinjin.
The company is also planning grade control drilling and general working capital.
Eligible shareholders in Australia and New Zealand will be able to participate in the share purchase plan starting on Aug. 7, applying for up to $30,000 in shares without incurring additional costs.
Kalgoorlie Gold Mining is an Australian resources company that has a portfolio of West Australian projects. It is focused on Bulong Taurus Project, Keith-Kilkenny, Laverton Tectonic Zone and Kalgoorlie.