Kalgoorlie Gold Mining has secured A$2.3 million through a placement and launched a fully underwritten A$1.1 million entitlement offer to fund exploration at its Pinjin Gold Project. The capital will target new drilling at the Lighthorse discovery, where earlier assays included high-grade gold within broader mineralised intervals.
- A$2.3 million placement at A$0.02 a share
- Fully underwritten 1-for-10 entitlement offer for A$1.1 million
- Funds directed primarily to Lighthorse and Pinjin exploration
- Follow-up RC drilling and aircore programs planned
- Placement price set at a 13% discount to last close
A$3.4 million raising targets Lighthorse drilling
Kalgoorlie Gold Mining (ASX:KAL) is putting fresh equity behind its most closely watched exploration target, securing firm commitments for an A$2.3 million placement and launching a further A$1.1 million entitlement offer. The funds are earmarked primarily for exploration across the Pinjin Gold Project, with follow-up drilling at the Lighthorse discovery taking priority.
The placement will issue 113.5 million new shares at A$0.02 each, using KalGold’s available capacity under ASX Listing Rules 7.1 and 7.1A. The issue price represents a 13% discount to the last close. The company said demand was strong from both existing and new investors, and that it accepted oversubscriptions within its placement capacity.
Earlier assays provide the exploration rationale
KalGold is not reporting new exploration results in this announcement. Instead, it is pointing investors back to the recent Lighthorse RC program, which produced intervals including 3 metres at 9.01 grams per tonne gold from 145 metres, within 22 metres at 1.58 grams per tonne, and 6 metres at 4.86 grams per tonne from 54 metres.
The company also highlighted individual assay results of 19.70 grams per tonne gold over one metre and 16.50 grams per tonne over one metre from two holes. KalGold said the results support the potential for high-grade mineralisation both at depth in primary orogenic gold and in shallow, oxidised material. That interpretation remains an exploration thesis rather than a resource estimate.
Shareholders offered a further 1-for-10 issue
Eligible shareholders in Australia and New Zealand will be offered one new share for every 10 held at the same A$0.02 price. The non-renounceable offer is fully underwritten by Stralis Capital Partners and is expected to issue 56.9 million shares, although the underwriting agreement contains conditions and termination rights.
Shareholders who take up their entitlements in full can seek additional shares through a top-up facility, capped at an additional 100% of their pro-rata entitlement and subject to possible scale-back. Taken together, the placement and entitlement offer represent approximately A$3.4 million of new equity before costs, with the final share count and ownership impact dependent on the entitlement process.
Aircore and RC programs form the next test
KalGold plans to continue first-pass aircore drilling across under-explored areas of Pinjin, including the Laverton Tectonic Zone Flexure target and the Rebecca Sequence rock package. Assays from the Flexure drilling are pending, while another aircore program is scheduled for late September to early October 2026. A follow-up RC campaign at Lighthorse is next in line.
The raising also carries a cost beyond dilution. Stralis and Lazarus Advisory are joint lead managers and bookrunners, with 10 million options exercisable at A$0.04 for two years proposed subject to shareholder approval. Stralis will also receive management, selling and underwriting fees totalling 6% of the entitlement offer’s gross proceeds. Placement shares are expected to settle on 17 September and be allotted on 18 September, while the entitlement offer is expected to close on 6 October, subject to change.
Bottom Line?
KalGold now has committed funding to turn Lighthorse’s encouraging drill signals into a larger test of continuity, depth and scale. The key trade-off is clear: more drilling capacity arrives alongside a larger share count, underwriting costs and the risk that follow-up results do not convert high grades into a defined resource.
Questions in the middle?
- Will follow-up RC drilling show that the high-grade Lighthorse intervals are continuous along strike and at depth?
- How many eligible shareholders will participate in the entitlement offer, and what final dilution will result?
- Can the planned aircore programs generate additional targets beyond the current Lighthorse focus?