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Corporate Spotlight

Kingston Resources Ltd is an ASX listed exploration and development company advancing the 2.8Moz Misima Gold Project in PNG and the Livingstone Gold Project in Australia.
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INTERVIEW WITH MD ANDREW CORBETT

DRILLING CAMPAIGNS

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Advancing drilling campaigns at Misima and Livingstone 

ASX Announcement 27 May 2019 


  • 11 holes drilled at Ewatinona, core sent to lab for assay 
  • Drilling now underway at new Quartz Mountain targets 
  • Misima North targets upgraded and drilling planned for next Quarter 
  • Livingstone heritage agreement complete, drilling to follow


Kingston Resources Limited (Kingston or the Company) is pleased to provide an update on current exploration activity at its flagship 2.8Moz Misima Gold Project in PNG.


Quartz Mountain Drilling – Ewatinona and Waipuna

11 holes for 1,476m have been completed at the Ewatinona prospect in the Quartz Mountain area. The drilling was designed to provide infill and validation data in an area east of the historic Ewatinona pit previously drilled by Placer during the 1990’s. Each hole also provides important structural data confirming the position and orientation of mineralised breccia zones. Assays are pending on this 11-hole program


Managing Director Andrew Corbett said “This is a small program of validation drilling. Now we’re having a fresh look at new target areas nearby which have been highlighted by recent studies and field work”. 


Drilling has now moved to a second target in the Quartz Mountain area, Waipuna prospect, which was recently identified by a modern reinterpretation of historic geochemical data combined with geophysics and LiDAR information.


Drilling continues to progress well, with April setting a new monthly record for metres drilled.


Misima North – Ara Creek 

Kingston is very excited by the potential at Misima North. Trenching and mapping programs are currently underway ahead of drilling which is planned to commence in the September quarter. Geochemical work in the area has delivered very encouraging high-grade results in a previously under-explored area in the vicinity of the pre-World War II Misima North gold mines. The structural position of Misima North suggests it has potential to be a northern extension of the main Umuna shear zone from which Placer mined 3.7Moz Au and which still hosts 2.6Moz Au of the Misima Resource. There are numerous historic underground workings in the area with records indicating elevated grade. Placer drilled a number of holes in the Misima North area in the early 1990’s, however the Umuna Shear itself has not yet been drilled.


Umuna East 

Umuna East has been identified as a potential drill target following a detailed review of LiDAR data and structural analysis by Kingston geologists. Like Misima North, Umuna East hosts an extensive network of geochemical anomalies and is also host to historic underground workings as well as an historic stamp mill. The area has long been the focus of artisanal mining, with local Misimans winning coarse supergene wire gold from mineralised structures at surface.


Exploration Strategy 

The existing 2.8Moz Misima resource may already be of sufficient scale to support a potential long life mining operation. Current exploration targets are prioritised with a view towards delivering new near-surface mineralisation. Such targets are likely to have the largest impact on project economics as access to near surface ounces can boost early years’ cash flow while access to the main Misima resource is developed. Please note, no feasibility or pre-feasibility studies have yet been completed to confirm this hypothesis, and investors should be aware that there is currently no certainty of future mine development


Kingston anticipates drilling each of these regional targets over the balance of 2019 to enable the information to be incorporated in resource updates and subsequently captured into mining studies.


Figure1: Misima prospect map showing the location of current prospects. 


Livingstone Gold Project (Western Australia): Aboriginal heritage survey

Heritage clearance has been granted for further drilling at Livingstone. This follows the conclusion of an Aboriginal Heritage Survey at Livingstone conducted with traditional owners from the Wajarri Yamatji group. Kingston will now progress to infill RC drilling on the Kingsley discovery, moving the prospect towards a maiden mineral resource. The timeline for drilling will be announced once preparations are finalised 


Click here to view the full announcement

RIU SYDNEY

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PRESENTATION

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$4.3M PLACEMENT

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$4.3m Placement and $4.0m Entitlement Offer

ASX Announcement 3 May 2019 


Highlights 

  • Received binding commitments for an institutional placement raising $4.3m and welcomes two new substantial shareholders 
  • To offer existing shareholders the opportunity to participate in a discounted 1 for 6 Entitlement Offer to raise up to an additional $4.0m 
  • Funds to be used primarily to advance exploration at the Misima Gold Project


Kingston Resources Limited (Company or KSN) is pleased to announce that it has successfully obtained binding commitments for a placement of 276m shares at a price of $0.016 per share (Placement) to institutional and sophisticated investors raising net proceeds of $4.3m. 


Kingston is delighted to welcome two new substantial shareholders to its register - DELPHI Unternehmensberatung AG (DELPHI) and Winchester Investments Group Pty Ltd (Winchester). DELPHI is a private German based investment company with investments in a number of Australian mineral exploration and mining companies. Winchester is an Australian private investment group which already held a non-substantial interest in Kingston. At the completion of the Placement and the Entitlement Offer both DELPHI and Winchester will hold an interest in Kingston of approximately 10%. Kingston is pleased to have the support of two new major shareholders who have a long-term investment strategy are very keen to support the continued development of Misima.


Funds raised will be used to advance exploration activities at the Company’s Misima Gold Project, as well as at the Livingstone Gold Project in WA, including: 

  • Extensive regional drill program at Misima targeting new deposits 
  • Extensional and infill drilling at the known Misima resource 
  • Exploration drilling at Livingstone Gold Project 
  • General working capital


Kingston MD Andrew Corbett said “We welcome our new shareholders and in particular DELPHI and Winchester. We are very encouraged by their support for Misima and their interest in developing the project into a long-term, viable mining operation. Their knowledge and understanding of the resources sector is also an important factor. 


“Misima is at an exciting point in its development as we drill exploration targets outside the existing resource that have been identified through our structural and geochemical work. These areas have not been the focus of any activity for almost two decades and are very prospective targets for Kingston. This work has occurred alongside the development of an updated geological model for Misima.


“Kingston has an active works program ahead and shareholders will be rewarded with new valuation catalysts. In the next two quarters we will ramp up the regional drill program targeting satellite deposits at Misima. The Company will also increase activities at its Livingstone Gold Project in WA. 


“We look forward to updating shareholders on these developments in the coming months.” 


The Placement is being undertaken pursuant to ASX Listing Rule 7.1 and 7.1A. It is anticipated that 213,186,388 shares will be allotted under Listing Rule 7.1, and 63,063,612 will be allotted under Listing Rule 7.1A. The shares are expected to be issued on or around 10 May 2019, with an Appendix 3B to be issued confirming exact allotments. 


Patersons Securities Ltd acted as Lead Manager to the Placement with Acova Capital as Joint Bookrunner.


Entitlement Offer 

Kingston is also pleased to offer existing eligible shareholders the opportunity to acquire New Shares through a prorata non-renounceable Entitlement Offer of 1 Share for every 6 Shares held by eligible shareholders on the Record Date (Wednesday, 15 May 2019) at the same issue price of $0.016 per New Share to raise up to approximately $4.0 million (before costs) (Entitlement Offer). Shares issued under the Placement to eligible shareholders will be entitled to participate in the Entitlement Offer. The maximum number of New Shares to be issued under the Entitlement Offer is 251,460,147.


The issue price of $0.016 per New Share represents a discount of 16% to the last closing price and 16% discount to the 10 day VWAP, and a 19% discount to the 30 day VWAP. 


Proceeds raised through the Entitlement Offer will provide the Company with additional funds to progress exploration and drilling activities at the Misima Gold Project and the Livingstone Gold Project.


Oversubscription Facility: Eligible shareholders that take up their entitlements in full may also apply for additional New Shares in excess of their pro-rata entitlement, subject to any scale back as determined by Kingston 


Shortfall Share Offer: After allocating any New Shares under the Oversubscription Facility, the directors may issue any remaining shortfall in New Shares to eligible new investors where permitted.


Key Terms 

Eligible shareholders are offered the opportunity to subscribe for 1 New Share for every 6 Shares held at 7.00pm (AEST) on Wednesday, 15 May 2019 at the Issue Price of $0.016 per New Share. The Entitlement Offer is nonrenounceable which means that the Rights do not trade on ASX, nor can they be sold, transferred or otherwise disposed of.


Participation in Entitlement Offer is entirely optional and will be open to all shareholders other than shareholders who have registered addresses in countries outside Australia or New Zealand where regulatory requirements make participation by the shareholder unlawful or impracticable. The complete terms and conditions of the Entitlement Offer will be distributed to eligible shareholders in the Offer Booklet on or around Monday, 20 May 2019 and full details are also available on the company’s website and via ASX announcements. Eligible shareholders will also be able to participate through the Company’s website from 20 May 2019 at www.kingstonresources.com.au by clicking on the ‘Entitlement Offer' button.


Click here to view the full announcement

VIDEOS

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