Mining investors flock to K2Fly

TECHNOLOGY company K2Fly has raised A$7.25 million via a placement.
Mining investors flock to K2Fly Mining investors flock to K2Fly Mining investors flock to K2Fly Mining investors flock to K2Fly Mining investors flock to K2Fly

Staff reporter

The company will issue 25 million shares at 29c each, a 10.8% discount to the last close.

Argonaut Securities was lead manager to the placement.

K2Fly said the placement was strongly supported by institutions and sophisticated investors with specific knowledge of the resources sector.

"The strong support from the investment community, particularly from new institutional investors, is testament that K2F has the right strategy, products and team," CEO Brian Miller said.

"This placement gives us a solid balance sheet to execute our future strategy."

K2Fly had $1.52 million cash and $1.58 million in receivables at March 31.

The company will use the funds raised for potential acquisitions, sales and marketing, product development and general working capital.

K2Fly's most recent deal, the acquisition of Decipher, only closed last month.

K2fly provides enterprise-level technical assurance and reporting solutions across all aspects of the environmental, social and governance functions, including land access, community and heritage, rehabilitation, tailings dams, resources inventory and mine geology systems, and ground disturbance.

Its blue-chip client base includes Rio Tinto, Vale, Fortescue Metals Group, Newmont Corporation, Glencore, Newcrest Mining, Roy Hill, AngloGold Ashanti and Gold Fields.

Its global reach stretches across more than 500 sites in 54 countries.

The company is based in Perth but also has offices in South Africa and the US.

K2Fly shares were unchanged at 31.5c in afternoon trade, valuing the company at $35.3 million.