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Kalgoorlie Mining Company To Raise A$9.7m In Fully Underwritten Rights Issue

Kalgoorlie Mining Company (ASX: KMC) is undertaking a fully underwritten three-for-one non-renounceable rights issue which will raise A$9.759 million before expenses.

The offer price is A$0.01 per share, with the proceeds raised under the issue to be used to stabilise the company's financial position.

Kalgoorlie Mining has outlined around A$5.05 million of the proceeds to be used to pay the company's creditors in full.

The remaining funds will be allocated to fund ongoing care and maintenance of the company's Bullant Project (A$1.5 million), pay ongoing tenement administration and exploration costs (A$0.49 million), with the remaining A$2.72 million to be applied towards corporate and compliance costs, general working capital and expenses of the issue.

Fully underwritten

The rights issue is fully underwritten by an investment syndicate represented by Perth based businessman Roger Kwok. As the rights issue is non-renounceable, shareholder entitlements cannot be transferred or sold.

The offer is a conditional offer. The issue of Kalgoorlie Mining shares under the offer is subject to approval of Kalgoorlie Mining shareholders at a general meeting to be held on 14 May 2012.