Strong backing for Kingston's Misima

PAPUA New Guinea-focused Kingston Resources is raising more than $A8 million, with two institutions taking a large number of the new shares on offer.
Strong backing for Kingston's Misima Strong backing for Kingston's Misima Strong backing for Kingston's Misima Strong backing for Kingston's Misima Strong backing for Kingston's Misima

Andrew Corbett

The company conducted a $4.3 million placement to institutional and sophisticated investors.
German investor DELPHI Unternehmensberatung AG and existing Australian shareholder Winchester Investments Group chipped in the bulk of the cash and will hold a combined 10% of Kingston when complete.
Patersons Securities was lead manager with Acova Capital as joint bookrunner.
Kingston will seek to raise a further $4 million via a one-for-six pro-rata non-renounceable entitlement offer.
The issue price for both offers is 1.6c per share, a 16% discount to the last closing price.
The funds raised will be used to advance the company's flagship 70%-owned Misima gold project in Papua New Guinea, and for exploration at the Livingstone gold project in Western Australia.
Kingston managing director Andrew Corbett welcomed the new shareholders to the register.
"We are very encouraged by their support for Misima and their interest in developing the project into a long-term, viable mining operation," he said.
"Their knowledge and understanding of the resources sector is also an important factor."
Misima, a former Placer Dome operation, has a 2.8 million ounce resource and multiple untested targets over 8km of prospective strike.
Kingston is aiming to continue exploration this year, as well as start mining studies.
The company will evaluate the Ginamwamwa prospect, discovered by Kingston in late 2017, as a possible starter pit.
Initial drilling reported earlier this week returned results including 10m at 1.2 grams per tonne gold from 8m, and 8m at 1.35gpt gold from 2m.
"Misima is at an exciting point in its development as we drill exploration targets outside the existing resource that have been identified through our structural and geochemical work," Corbett said.
"These areas have not been the focus of any activity for almost two decades and are very prospective targets for Kingston. This work has occurred alongside the development of an updated geological model for Misima."