Successful Completion of Rights Issue
? Completes equity raising for Andash gold-copper project
Kentor Gold Limited (Kentor or the Company) is pleased to announce the successful completion of its 3 for 5 non-renounceable rights issue at an issue price of $0.13 per share raising the maximum amount of $51.8 million.
Applications for the Entitlement Shares totalled $46.1 million with approximately 87% of shareholders making application.
All shareholders who submitted valid applications for their existing Entitlement Shares will be allocated 100% of their applications.
At the time of announcing the Rights Issue, the Company had received binding commitments for any shortfall. The Board of Kentor Gold has resolved to allocate the entire shortfall of $5.6 million to the party under the First Priority Pool who provided the initial binding commitments on the priority basis.
The proceeds from the Rights Issue in conjunction with the proceeds from the Placement and the proposed debt facility will fully fund the development of the Andash Project.
Helmsec Global Capital and RBS Morgans were Joint Lead Managers to the Rights Issue.
The timetable going forward will be:
Issue and allotment of the new shares for which valid applications have been
received and accepted by KGL - 17 December 2010
Dispatch of holding statements - 17 December 2010
Last day of deferred settlement trading of new shares under the rights issue - 17 December 2010
Normal trading of new shares on ASX - 20 December 2010
Refunds for unfilled applications under the top-up facility will be despatched to shareholders as soon as practicable.
Kentor Managing Director Simon Milroy said:
“We are delighted with the high take-up rate by shareholders.
“The rights issue comprised the major part of the $65 million equity capital raising for the development of the Andash gold-copper project.
“To have this solid backing of shareholders and international investors for the project and the Company is gratifying as we move towards the full-scale development of our first mine.”
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