Kingwest seeks $4m for gold drilling

Kingwest Resources plans to spend funds committed by sophisticated and institutional investors to accelerate ongoing exploration activities across its Western Australian projects.

The company is set to issue over 33 million shares at an issue price of 12 cents apiece after completing its bookbuild for a placement today.

Kingwest entered a two-day trading halt earlier this week to undertake the capital raise.

Proceeds from the raise will go towards follow-up drilling at the Sir Laurence Discovery, which is hosted within the company’s Goongarrie gold project, and resource definition drilling at the Menzies gold project.

The fundraising efforts follow the company’s mining and processing joint venture announced with South Perth-based FMR Investments earlier this month.

The ASX-lister said its new partner commenced a diamond drilling programme at the Menzies gold project on Wednesday, targeting depth extensions to the underground resource.

Kingwest chief executive officer Ed Turner said the team eagerly anticipated the upcoming drilling campaigns.

“This capital raise will provide the company with sufficient funding to test Sir Laurence and other regional targets in the period ahead of expected cash-flow from our Menzies mining joint venture which we hope will supplement future exploration expenditure,” Mr Turner said.

Euroz Hartleys and Peloton acted as joint lead managers to the placement.