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Kalgoorlie Mining Company’s substantial shareholder acquires

Kalgoorlie Mining Company (ASX: KMC) has added a new substantial shareholder to its register after Peter Bowman Nominees purchased about 16.44 million shares, acquiring an initial 5.48% stake in the company.

Peter Bowman Nominees bought the shares for a consideration of about A$1.3 million, providing an average entry price of $0.08 per share.

Kalgoorlie Mining recently announced it had received commitments for a A$6 million placement priced at $0.08 per share.

The capital injection will be allocated to the construction of stage one of the gold treatment plant at the company’s Bullant Gold mine, which provides several opportunities.

Not only will Kalgoorlie Mining be able to mill its own ore by around mid-2012 when construction of the facility is forecast to be completed, but it can also process nearby third party ore – and has already entered an agreement with Phoenix Gold (ASX: PXG) to mill Phoenix's ore in the future.