Kingston Resources (ASX:KSN) is raising up to $1.31 million to...

Kingston Resources (ASX:KSN) is raising up to $1.31 million to fund its drilling programs targeting iron oxide copper gold (IOCG) mineralisation in South Australia.

The company has raised $360,000 through a placement of 21.2 million shares priced at $0.017 to sophisticated investors.

It will also offer existing shareholders a non-renounceable one-for-three rights issue to raised up to $952,000.

Both the placement and rights issue include one free attaching option exercisable at $0.03 and expiring on 30th June 2019 for every three shares subscribed.

This replaces the company’s previous four-for-five rights issue priced at $0.02 to raise about $3.45 million.

Proceeds will be used for the company’s drill programs.

This includes the Six Mile Hill copper-gold project, where the company is drilling the first hole of its multi-hole drilling campaign targeting IOCG mineralisation.

Six Mile Hill is located on the eastern margin of the highly prospective and prolific Gawler Craton, which hosts the world-class Olympic Dam IOCG mining operation and the Carrapeteena and Prominent Hill deposits.