Kingston Resources (ASX: $KSN) Equity Raising Announcement

Kingston Resources Limited (KSN) has successfully completed a fully subscribed placement of 124.5 million shares at a price of $0.065 per share, raising proceeds of $8.1 million. Additionally, the company will offer existing shareholders the opportunity to participate in an Accelerated Non-Renounceable Entitlements Offer (ANREO) on the basis of 1 new share for every 6 Kingston shares, raising proceeds of $5.4 million. The company has received strong support from two existing substantial shareholders with participation in both the Placement and the institutional component of the ANREO offer. The retail component of the ANREO offer will be fully underwritten by Delphi Unternehmensberatung Akteingesellschaft, an existing major shareholder and sophisticated investor.

Executive Commentary on Equity Raising and Future Operations

We are immensely grateful for the support we have received from both new and existing shareholders. Their confidence is a validation of our work as we move forward with our plans to significantly increase production with Pearse. There is currently a lot of activity in the Cobar region and Kingston is in an excellent strategic position with an operating processing plant and outstanding exploration upside potential. The Tailings Project has been a highly successful operation for the company, and the entire team should be very proud of what has been delivered. Shortly after Kingston acquired the project in January 2022, the site team made operational improvements such as increasing the throughput rate and managing feed densities to maximise monthly gold production. Operating cash flow from the project has reached $24m as of 31 December 2023. The focus at Mineral Hill team will now shift to extracting the remaining high-grade tailings inventory and making the final preparations on the transition to open pit mining.

Summary of Equity Raising and Future Outlook

Kingston Resources (ASX: $KSN) has successfully completed an equity raising of $13.5 million to accelerate hard rock mining in the Cobar Basin. The company is set to significantly increase payable metal production, expecting a 133% year-on-year increase in payable metal to approximately 7kt CuEq following the transition to open pit mining at Pearse. The successful and profitable Tailings Mining Project is scheduled for completion over the next two months to enable the transition to hard rock mining at Mineral Hill. The refurbishment of the existing processing plant for concentrate production is nearing completion. The funds raised will be used for the transition to open pit mining at Pearse, underground resource development drilling, processing plant commissioning, and general working capital. Kingston's Managing Director and CEO, Andrew Corbett, expressed gratitude for the support received and highlighted the company's strategic position and operational achievements. The company remains focused on its strategy to self-manage and self-perform all aspects of the operation at Mineral Hill, aiming to maximize the operating margin for shareholders. The transition to open-pit mining at Pearse is expected to be a game-changer for Kingston, with high-margin and profitable operations driving a substantial increase in payable metal in FY25. Kingston's ambitions include maximizing the value from its valuable resources and leveraging the high gold grades and recent strength in spot gold prices to enhance operating cash flow. The company's focus on local talent development and innovative best practices reflects its commitment to long-term success and sustainable growth.