Kingsgate Consolidated Limited (ASX:KCN)
has headed into a trading halt as it prepares to raise between $39.2 million and $59.4 million to partially fund its projects.
The gold miner’s capital raising will be undertaken through both a placement and entitlement offer priced at $1.00 per new share, a 22.5 per cent discount to the stock’s last close.
Net proceeds will be used to repay existing corporate debt and fund pre-development expenditure at the Nueva Esperanza silver and gold project in Chile.
Kingsgate also plans to apportion the funds to completing the New South Wales Bowdens silver project Definitive Feasibility Study (DFS) and Environmental Impact Statement (EIS) and for working capital and general corporate purposes.
Shares in Kingsgate Consolidated last traded at $1.29 before being placed in a trading halt.
Kingsgate Consolidated booked a net loss of $4.89 million in the first half of the 2014 financial year.