Kentor Gold's (ASX: KGL) largest shareholder KMP Investments has moved to a 27.32% stake in the company following underwriting the rights issue for 8.33 million shares for a consideration of A$5 million.
KMP Investments is a subsidiary of the Salim Group which is Indonesia's largest conglomerate with investments spread across South-East Asia, Hong Kong, North America and Australia.
The underwriting was part of a successful $20.5 million capital raising comprising a placement and rights issue, which is a very favourable outcome for the company considering the current financial environment.
Kentor pours gold
Kentor just last month transitioned to be Australia's newest gold producer, with the first pour from the Murchison Gold Project in Western Australia. The first gold doré bar weighed 1.13 kg (36.3 ounces) and is estimated to be 90% gold.
Murchison is forecast to produce at around 24,000 ounces annually, with the added potential to expand production via Gabanintha.
Planning is underway for an expansion in 2013, with initial production to be sourced from the Lewis and Reward pits at Burnakura.
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