Kingsrose to raise $6m for Silver Queen

Applecross-based Kingsrose Mining Ltd will open its initial public offer today, aiming to raise $6 million to fund the development of its Sand Queen gold mine in a joint venture with Reed Resources Ltd.

The company will issue 30 million shares at 20 cents each to raise the money, which it says will set it on track for the start of full scale commercial production in the first quarter of 2008.

Kingsrose will hold a 50 per cent stake in the joint venture after paying all mining costs, extending its interest to 60 per cent for gold mined from below the 243 metre level.

The project is located at Comet Vale, north west of Kalgoorlie, with Reed Resources Ltd responsible for exploration, toll treatment and transport of the ore.

John Morris serves as non-executive chairman of the company, being joined on the board by Michael Andrews and J William Phillips. Jeannette Smith serves as company secretary.

Also on the board is managing director David Hatch, who served as managing director of Westonia Mines Ltd from 2004 until September this year.

Kingsrose has retained Mack & Co as investigating accountant, while legal advice was provided by Fairweather & Lemonis.

The deal, which is not underwritten and will not accept oversubscriptions, is expected to close on November 29.