Kingston Resources (ASX: KSN) has secured firm commitments from...

Kingston Resources (ASX: KSN) has secured firm commitments from investors to sub-underwrite the full amount of the Offer.

Kingston has extended the Record Date for its Rights Issue to Thursday 13 August 2015 at the request of the lead manager to allow their clients and the market opportunity to participate in the entitlement given the certainty of funding.

Kingston is seeking to raise approximately $2.35 million through a non-renounceable pro-rata rights issue offer of 4 for 5 at an issue price of 2.0 cents per share, with one (1) free attaching option, exercisable at 4.0 cents per share on or before 30 June 2019, for every two shares issued.

The funds will cover the next stage of exploration and evaluation at the company’s flagship Six Mile Hill project, plus also fund drilling at the Cootanoorina project in the north of South Australia and further evaluation of the Hiltaba project located in the Northern Eyre Peninsula.

The highly experienced technical team at Kingston Resources commenced drilling at its flagship Six Mile Hill (100% KSN) copper-gold exploration project at the start of August, targeting offset gravity-magnetic anomalism supported by shallow copper geochemistry.

Targets are anticipated at about 180-250 metres below surface in the top priority holes. Up to five drill holes will be drilled in the campaign targeting IOCG mineralisation.
The Six Mile Hill project lies on the eastern margin of South Australia’s highly prospective and prolific Gawler Craton, which hosts the world-class Olympic Dam IOCG mining operation and the Carrapeteena and Prominent Hill deposits.

The diamond drilling campaign at Six Mile Hill is being partially funded by the South Australian Government through its innovative Minerals Systems Drilling Program (MSDP), which includes financial and technical collaboration with the Department of State Development and the Deep Exploration Technologies Cooperative Research Centre (DET CRC).

Kingston has been astute in securing additional government funds beyond the MSDP. The South Australian government will also co-fund the drilling of the best target at Kingston’s Cootanoorina project on the north eastern margin of the Gawler Craton. This will be Kingston’s next drilling campaign after Six Mile Hill.

As recently highlighted by a research report by Strachan Corporate (AFSL 259730), Kingston is “exposing shareholders to high leverage exploration where value can be added by early stage target selection and follow-up, detailed ground testing.”

The diamond drilling campaign is expected to run for approximately 3 months and results will be released as soon as possible.

To view a copy of the Strachan Corporate research report, please click here

To view a copy of the prospectus click here