KGL raises funds for Jervois copper progress

COPPER contender KGL Resources is seeking to attract A$24 million in new equity for its Jervois asset in Northern Territory, a potential development costing $200 million and initially producing 30,000t per annum of copper in concentrate.
KGL raises funds for Jervois copper progress KGL raises funds for Jervois copper progress KGL raises funds for Jervois copper progress KGL raises funds for Jervois copper progress KGL raises funds for Jervois copper progress

Jervois copper project, NT

Staff Reporter

The $24 million is priced at 42c per share, with the funding to go towards its feasibility work and exploration. 

Undisclosed institutions have outlaid half the funding sought, with the balance to be raised by a non-renoucemeable entitlement offer. 

Prefeasibility numbers included a net present value of $177 million pre-tax and an internal rate of return of 23%, with a copper price of US$3.08 per pound used - currently $4.06/lb - and an US:AUD exchange rate of 71c (versus about 77c of late). 

Life-of-mine all in sustaning costs are put at $2.25/lb. 

KGL is currently on the hunt for a CEO. 

The company started the current quarter with A$5.8 million. 

Shares in KGL were up 6.5% to A49c in mornign trade, capitalising the company at $165 million.