Investors – including cornerstone investor Bacchus Resources – have demonstrated their support to Kingsland’s plans to advance its Leliyn graphite project in the NT by backing a $3.6m placement.

Importantly for the company, the placement of circa 11.3 million shares priced at $0.32 each – a 16% discount to the 15-day volume weighted average price – to existing shareholders, new institutions, dedicated resource funds ensures it is fully funded with a $5.5m cash balance for its planned exploration and development program.

Highlighting the interest from shareholders, Bacchus provided cornerstone support to the placement by subscribing for enough shares to maintain its 11.2% holding.

Kingsland Minerals (ASX:KNG) plans to carry out both reverse circulation and diamond drilling, metallurgical testwork, geophysics and a maiden resource estimation.

“We are overwhelmed by the demand for the placement and extremely pleased by the strong support from existing shareholders and new domestic and international institutional investors,” managing director Richard Maddocks said.

“Attracting such high-quality institutional investors validates the tier-1 potential of the Leliyn Graphite Project and our proposed exploration and development strategy.”

 

Leliyn exploration and development

The company believes that Leliyn has the potential to be a very large graphite deposit, with electromagnetic results supporting its view of what could be a very large system.

Adding further support to this, assays from the first two holes from its ongoing drill program returned encouraging assays of 45m at 9% from surface, 28m at 11.1% from 55m, and 25m at 10.1% also from surface.

Kingsland plans to use proceeds from the placement to carry out RC and diamond drilling to test the Exploration Target of between 200Mt and 250Mt grading 8% to 11% total graphitic content.

This target is based on a graphitic schist measuring 5km long, 200m deep and 100m wide, which sits within a longer 20km long graphitic schist.

Geophysics will also be carried out to delineate the remaining 15km of 20km outside of the Exploration Target, which Kingsland believes has significant exploration potential.

The company will then carry out metallurgical testwork to determine the properties of the Leliyn ore and define a maiden mineral resource.

 

This article was developed in collaboration with Kingsland Minerals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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