Kingston up on lithium buys

Shares in North Fremantle-based Kingston Resources have surged on news the company plans to raise $6.8 million to fund the purchase and exploration of several lithium tenements in Western Australia and the Northern Territory.

Kingston will pay $6.4 million in cash and shares to acquire 20 lithium-prospective tenements that cover four project areas – Mt Cattlin, Greenbushes, Bynoe/Windgate, and North Arunta.

The Mt Cattlin tenements lie in close proximity to the Mt Cattlin lithium mine near Ravensthorpe, which was recently reopened by the project’s owners, Galaxy Resources and General Mining Corporation.

In order to fund a lithium exploration program at the tenements, Kingston has also engaged Bell Potter Securities to manage a $6.85 million capital raising priced at 2.1 cents per share.

The news sent Kingston shares up 44 per cent to 3.6 cents a share at 10am.

Kingston shares haven’t traded that high since early 2014.

The company has also announced a board shake-up that includes the departure of chairman Jonathan Davies and the addition of Andrew Corbett as managing director, who has previously served as underground manager at Northern Star Resources’ Jundee gold mine, and has also spent six years managing the mining services business units of Orica.

Kingston has also brought in former Mount Magnet South managing director Andrew Paterson as its new chief geological officer.

Stuart Rechner and Yafeng Cai will remain on the Kingston board, with the company searching for a suitable independent chairman to replace Mr Davies.