Kings Minerals N.L. (ASX:KMN) will raise funds to develop its San Anton project in Mexico, incorporating a proposed business combination with 71.3% controlled subsidiary, San Anton Resource Corporation Inc.
The non-renounceable 1 for 5 rights issue, pitched at a price of $0.06 cents per share, seeks to raise a maximum of $5,094,130 based on issued capital. The issue is not underwritten.
At San Anton, the company plans to generate cash flows from a relatively low cost operation located in an area with well established infrastructure.
Funds would also be used for a full feasibility study for a gold heap leach/CIL project, anticipated completion by the last quarter of 2010.
Metallurgical test work would be undertaken to increase confidence in the existing data and for improvements in the gold and silver recoveries for the different material types within the deposit.
Disclosure: The author holds no positions in the company