Kalgoorlie Mining Company has announced a plan to raise up to $8.5 million to stabilise its financial position and reduce debts.
The Western Australia-based exploration company announced today it would raise a minimum of $6.5 million and a maximum of 8.5 million, through a rights issue underwritten by Patersons Securities.
“Cornerstone support for the rights issue is in the process of being finalised and an announcement regarding terms will be made once an agreement is finalised,” the company said in a statement.
Kalgoorlie Mining said it estimated its current debt position to be between $5.0 and $5.2 million.
“Taking into account current receivables, liabilities and other outgoings including costs associated with the rights issue, KMC anticipates that at the conclusion of the rights issue, all liabilities would have cleared and it will have approximately $2 million to $4 million left for future working capital,” the company said.
Kalgoorlie Mining stocks last traded at 4.9 cents.