Kingston Resources Limited's Pro-Rata Entitlement Offer

Kingston Resources Limited (ASX: $KSN) has announced an Accelerated Non-Renounceable Pro-Rata Entitlement Offer to raise up to approximately $5,394,596. The offer entails 1 new share for every 6 shares held at an issue price of $0.065. Shareholders have until 5.00pm (AEST) on Wednesday, 8 May 2024, to accept and make payments. The offer booklet contains crucial information and is not a prospectus. It is important to note that the offer is not for distribution or release in the United States or to U.S. persons.

Chairman's Letter and Offer Details

In a letter to shareholders, Mick Wilkes, the company's chairman, has invited them to participate in the Entitlement Offer. The offer is designed to reward and encourage the loyal shareholder base, with the issue price set at a 20.4% discount to recent trading in the shares. The funds raised from the offer will be utilized for accelerating the transition to open pit mining at Pearse, underground resource development drilling, commissioning of the Mineral Hill processing plant for concentrate production, and general working capital. Additionally, an underwriting agreement with Deutsche Balaton Aktiengesellschaft for the retail entitlement offer has been established. The offer booklet provides comprehensive details on the company's capital structure, options available to shareholders, application process, key risks, shareholder information, Australian taxation consequences, and a glossary of terms. It also highlights the company's past performance and forward-looking statements, while specifying the governing law for the offer.

Summary and Outlook

Kingston Resources Limited (ASX: $KSN) is engaged in gold exploration in Australia and Papua New Guinea, with a focus on environmental compliance. The company aims to conduct its operations to the highest standard of environmental obligation. However, its concentration primarily on gold exploration poses a diversification risk. The completion of the offer will result in the issue of up to approximately 82,993,790 million new shares, potentially leading to dilution for existing shareholders. The offer does not guarantee the company's future financial performance. Kingston Resources has entered into an underwriting agreement, and the offer is subject to various risks associated with market conditions, geopolitical factors, and equity market fluctuations. Shareholders are advised to seek independent professional advice before deciding to invest. The company reserves the right to withdraw the offer at any time. The announcement also includes a glossary of terms and the corporate directory of Kingston Resources Limited. The company's ambitions, goals, forecasts, and guidance regarding their corporate strategy and the announcement are outlined in the offer booklet, providing shareholders with a comprehensive understanding of the offer and its implications.