Offering raises funds to develop company's Andash Gold-Copper Project
By Devika Patel
Knoxville, Tenn., Nov. 15 - Kentor Gold Ltd. settled a "significantly oversubscribed" private placement of shares, according to a company news release. Helmsec Global Capital Ltd. and RBS Morgans Corporate Ltd. were the joint lead managers.
The company sold about 86.5 million ordinary shares at A$0.155 per share for A$13.4 million. The price per share is a 22.5% discount to the Nov. 12 closing share price of A$0.20 and an 18.4% discount to the 30-day volume weighted average price of A$0.19.
The company also raised A$51.8 million in a non-renounceable rights issue.
Proceeds will be used for development of the Andash Gold-Copper Project.
"The placement and investor reaction to the rights issue represent a massive vote of confidence in both the quality and potential of Andash and the comprehensive expertise within Kentor to develop and operate this low-cost, high-grade gold-copper project in the Kyrgyz Republic," managing director Simon Milroy said in a press release.
"We are very pleased to have been able to structure the financing to enable shareholders to participate substantially through the rights issue while covering a considerable proportion of the project financing with debt," Milroy continued.
"The equity raising announced today complements the $50 million debt financing, which Macquarie Bank has been mandated to provide for the project, the total capital cost of which is estimated at $96 million."
The specialist gold explorer is based in Brisbane, Australia.
| Issuer: | Kentor Gold Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$13.4 million
|
| Shares: | 86.5 million (approximate)
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| Price: | A$0.155
|
| Warrants: | No
|
| Managers: | Helmsec Global Capital Ltd. and RBS Morgans Corporate Ltd. (joint leads)
|
| Settlement date: | Nov. 15
|
| Stock symbol: | Australia: KGL
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| Stock price: | A$0.20 at close Nov. 12
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