KGL Resources (ASX:KGL) is raising up to AU$7.7 million via a 1-for-8 pro-rata traditional non-renounceable entitlement offer, according to a Thursday filing with the Australian bourse.
The non-underwritten offer is subject to at least AU$3 million in subscription. KGL's major shareholder, KMP Investment, committed to invest AU$2.7 million, representing its full entitlement.
Over 81 million new shares will be issued at a price of AU$0.095 each. The offer will open on March 17 and conclude on March 26, unless extended, according to a revised timetable in a separate filing.
Proceeds will be used to support the construction of the Jervois project in the Northern Territory.
The mining company's shares were down 3% in recent trade.
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