Minerals explorer Kimberley Metals has launched a $13.3 million capital raising to accelerate exploration and development at its Mineral Hill copper-gold-silver mine in NSW and its silver-lead assets in the Kimberley.
Kimberley announced today it would raise up to $9.5 million through a non-renounceable rights issue of 38 cent, 5 year 10 per cent per annum convertible notes to existing shareholders.
In addition to the notes under the rights issue, Kimberley will offer a further 10 million notes to raise up to $3.8 million from financial institutions and sophisticated investors.
Kimberley said it had already received commitments for more than $3 million of those notes.
Executive chairman Jim Wall said the funds would be applied to the expansion of production capacity at Mineral Hill and to explore and evaluate the Manbarrum and Sorby Hills projects in WA.
“The refurbished Mineral Hill plant was delivered on time and on budget, has now been successfully commissioned and has treated stockpiled ore,” Mr Wall said.
“We plan to accelerate gold and silver production at Mineral Hill mine and will seek to extend the high grade copper reserves as wello as introduce silver-lead-zinc concentrate prdocution.”
Mr Wall said while the company was focused om Mineral Hill, it also sought to bring Sorby Hills into production by 2013.
At close of trade today the company’s stock was down half a cent, to 31.5 cents.
