* $10m facility to be provided by PURE Asset Management (Resources Fund)
* Strengthens balance sheet and provides funding to accelerate work programs associated with the Mineral Hill mining restart at the Pearse open pits and the SOZ underground
* Attractive terms, with strong alignment with shareholders, with warrants (options) to acquire ordinary shares issued at 20 cps, a 127% premium to the last traded share price
* Securing debt validates the development strategy at Mineral Hill and supports Kingston’s vision to create an ASX listed mid-tier gold and copper producer
Kingston Resources Limited (ASX: KSN) (Kingston or the Company) is pleased to announce the signing of a binding term sheet for a $10m debt facility with PURE Asset Management to fund the Company’s key growth initiatives at Mineral Hill.
The funding will be provided in two tranches, including an immediate $5m tranche, followed by a second $5m tranche to be drawn by 30 November 2022, subject to meeting progress milestones. The funding will enable work plans to be carried out in the short term to support the delivery of a five year plus mine life at Mineral Hill. These include:
* Engineering studies for refurbishment of front end of Mineral Hill processing plant
* Near term Resource/Reserve updates at the Pearse and SOZ deposits
* Mining studies and all technical programs for Pearse open pits
* SOZ underground refurbishment works and mining studies
* Working capital
For more information, download the attached PDF.
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