Kingston Resources has launched a fully underwritten $8.47 million rights issue priced at 3.5 cents per share to support a major drilling campaign and plant expansion at its Mineral Hill project.
- Fully underwritten $8.47 million rights issue at $0.035 per share
- Offer open to eligible shareholders in Australia, NZ, Hong Kong, Singapore, EU
- Funds to back 25,000m drilling and processing plant expansion studies
- Placement of 125.7 million shares raised $4.4 million pre-offer
- Ineligible shareholders excluded; shares to be sold by nominee
Capital Raise Targets Mineral Hill Growth
Kingston Resources Limited (ASX:KSN) has kicked off an $8.47 million fully underwritten non-renounceable rights issue priced at 3.5 cents per share. Eligible shareholders can subscribe to one new share for every four held, with the offer set to close on 14 July 2026. This capital raise is designed to fund a substantial underground and surface drilling program alongside studies aimed at expanding the processing capacity at the company’s Mineral Hill polymetallic mine.
Drilling and Plant Expansion at the Core
The proceeds will bankroll an extensive 25,000-metre drilling campaign intended to update Measured and Indicated Resources and chase high-priority exploration targets. Concurrently, Kingston plans to advance studies on expanding its processing plant, which currently holds permits to increase throughput up to 700,000 tonnes per annum. These studies will focus on optimising the processing rate to align with expected underground mining volumes over the mine’s life.
Placement Complements Rights Issue
Prior to launching the entitlement offer, Kingston completed a placement of approximately 125.7 million shares at the same issue price, raising about $4.4 million. Together with existing cash resources and deferred payments from the Misima sale, the capital injection aims to support Mineral Hill’s ongoing expansion strategy and operational readiness. The rights issue is fully underwritten by Argonaut Corporate Finance Limited, providing certainty of funds despite market fluctuations.
Shareholder Eligibility and Nominee Sale
The offer is open to shareholders registered in Australia, New Zealand, Hong Kong, Singapore, and the European Union (excluding Austria). Shareholders outside these jurisdictions are deemed ineligible due to regulatory and cost considerations. Shares that would have been allocated to ineligible shareholders will instead be issued to a nominee appointed by the company, who will attempt to sell them on the market. Any net proceeds, after costs, will be distributed pro rata to those shareholders, although there is no guarantee of sale price or timing.
Use of Funds and Cost Coverage
Funds will also cover redundancy and fleet demobilisation costs, care and maintenance expenses, offer costs, and general working capital needs. This comprehensive allocation reflects Kingston’s focus on maintaining operational flexibility while advancing Mineral Hill’s resource base and processing capabilities.
Bottom Line?
The rights issue marks a critical funding milestone for Kingston’s Mineral Hill expansion, with drilling results and plant studies due to shape the project’s next phase.
Questions in the middle?
- Will shareholder uptake meet the full $8.47 million target given market conditions?
- How will the drilling results influence Mineral Hill’s resource classification and reserve estimates?
- What timeline is expected for plant expansion decisions following the studies?