KGL Resources has secured firm commitments for a $180 million conditional placement, marking a significant milestone in its plans to develop the Jervois copper project in the Northern Territory.
The placement forms part of a broader $300 million equity raising announced last week and attracted strong backing from domestic and international institutional investors. Support came from existing shareholders, including KGL’s largest shareholder, KMP, while streaming partner Wheaton Precious Metals will also join the register.
“This equity raising is a major step in transforming KGL from an exploration company into a copper mine developer and operator,” KGL Resources chair Jeff Gerard said.
“Subject to completion of the raising, including shareholder approval, KGL expects to be fully funded for final development and construction of the Jervois project, with a cash buffer, no conventional project debt, and unhedged copper exposure.”
The company will issue approximately 902 million new shares at $0.20 each under the placement, subject to shareholder approval at a general meeting scheduled for July 30.
Combined with a $120 million entitlement offer and proceeds from its streaming agreement, the raising is expected to provide the capital required to advance Jervois through construction and into operations.
The placement was not underwritten and introduced several new institutional investors to KGL’s share register. KMP is expected to invest approximately $65 million, while certain directors have also indicated their intention to participate, subject to shareholder approval.
“Our clear focus is now on execution: building the Jervois project, advancing early works, managing costs, and progressing exploration,” KGL Resources chief executive officer Sam Strohmayr said.
“Our plan has construction starting this year and open pit mining commencing next year. We intend to deliver an operational mine for all shareholders.”
The entitlement offer is expected to open on July 3, giving eligible shareholders the opportunity to acquire one new share for every 1.29 shares held at the same $0.20 issue price.
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