KGL Raises A$300 Million to Fully Fund Jervois Copper Project

Equity Raising Completes Jervois Funding Package

KGL Resources Limited (ASX:KGL) has kicked off a A$300 million equity raising to fully fund the development of its high-grade Jervois Copper Project in Australia's Northern Territory. The raise consists of a A$180 million institutional placement, conditional on shareholder approval, and a fully underwritten A$120 million entitlement offer to existing shareholders. This capital injection, alongside a US$300 million precious metals streaming agreement with Wheaton Precious Metals and existing cash reserves, is expected to deliver approximately A$689 million in aggregate funding to drive Jervois into production.

The equity raising is anchored by major shareholders, with KMP Investments Pte. Ltd (KMP) pre-committed to invest up to A$113 million, increasing its stake from 33.2% to 36.2%. Wheaton Precious Metals has also pre-committed to subscribe for up to A$35 million in the placement. The entitlement offer is fully underwritten except for KMP's commitment and around A$17 million from other institutional shareholders, while the placement is not underwritten.

Jervois Positioned as Australia’s Next Pure-Play Copper Producer

The Jervois Copper Project boasts a robust 10-year mine life with an average copper production of 30,000 tonnes per annum, potentially rising to 35-40ktpa, complemented by meaningful gold and silver credits. The project is underpinned by Ore Reserves of 14.4 million tonnes at 1.8% copper, with a broader production target of 18.5 million tonnes at 1.65% copper. Jervois’s straightforward metallurgy and conventional processing flowsheet support a low-risk commissioning plan focused initially on sulphide ore, supplemented by intermittent processing of oxide and transitional stockpiles.

The project economics are compelling, with a post-tax net present value (NPV8) of A$839 million and an internal rate of return (IRR) of 31%, based on copper at US$6.06/lb, gold at US$4,834/oz, and silver at US$81/oz. Capital expenditure is estimated at A$439 million for construction, with additional funding allocated for mining, stockpiling, exploration, and a prudent liquidity buffer of approximately A$70 million. Notably, Jervois is fully permitted and shovel-ready, with a highly credentialled management team experienced in base metal mine development and operations.

Strategic Streaming Agreement with Wheaton Precious Metals

The US$300 million streaming deal with Wheaton Precious Metals, announced earlier in April 2026, provides upfront capital and a cost overrun facility. Wheaton will purchase a portion of Jervois’s gold and silver by-products at a fixed discount to spot prices, while KGL retains full exposure to copper revenues. The first US$16 million tranche of the upfront payment has already been received, supporting early works and maintaining the project schedule.

This streaming arrangement de-risks the project financing by reducing reliance on traditional debt and off-take agreements. The equity raising complements this by providing the remaining funding required to take Jervois from development to production, while preserving KGL’s core exposure to copper, the primary revenue driver.

Path to Final Investment Decision and Construction

KGL is targeting a final investment decision (FID) and commencement of construction activities in the third quarter of calendar year 2026. The company plans to lock in major contracts for engineering, procurement, and construction (EPC), as well as open-pit mining, shortly after completing the equity raising and securing shareholder approval for the placement component.

The project timeline anticipates first copper production by 2028, positioning Jervois among a select group of advanced copper projects expected to come online this decade. Alongside development, KGL will continue exploration efforts within the district-scale mineralised province, which covers 110 square kilometres and offers significant potential for mine life extensions and new discoveries.

Risks and Shareholder Considerations

While the equity raising is fully underwritten aside from specific commitments, the placement requires shareholder approval at an extraordinary general meeting. Failure to secure approval could impact the company's ability to raise the full proceeds, potentially affecting project funding and timelines. Additionally, the streaming agreement's remaining payments are contingent on meeting construction milestones and regulatory conditions.

Shareholders who do not participate in the entitlement offer risk dilution, as the new shares issued under the placement will represent approximately 39.7% of the post-raising issued capital. KGL has disclosed a range of project and market risks, including commodity price fluctuations, permitting, operational execution, and funding availability, which could influence project outcomes and share price performance.

The equity raising price of A$0.20 per share represents a 25.2% discount to the last closing price and a 10.3% discount to the theoretical ex-rights price, reflecting market conditions and providing an incentive for participation.