The proceeds will help KGL to boost the mine planning and complete the full project feasibility study for the project


KGL will use proceeds to boost the mine planning. (Credit: PublicDomainPictures from Pixabay)

Australian mineral exploration company KGL Resources has announced plans to raise up to A$23.77m ($18.7m) for the development of the Jervois copper project in Northern territory.

The company has completed a strategic institutional placement to raise around A $12m ($9.44m). It has also proposed one for 13 non-renounceable entitlement offer of fully paid ordinary shares in KGL to raise up to A$11.77m ($9.26m).

KGL will use proceeds to boost the mine planning, complete the full project feasibility study, and undertake financing for the project.

The funding will also be used by the company to evaluate additional exploration targets in the area.

KGL executive chairman DenisWood said: “At Jervois the aim is to recommence infill and step outdrilling to increase the resource base and extend the current mine life and project economics.

“We will also seek to leverage the strong correlation observed between DHEM analytics and mineralisation, as evidenced from the work done in recent years. As such some of the proceeds will be directed toward additional geophysics and drilling of key greenfield exploration targets at Jervois.

“KGL’s geological team are excited about the potential exploration success on their tenements given theirimproved understanding of the areas structural and geological setting, and ability to use technologies to better target mineralized zones.”

Last month, KGL Resources announced the receipt of Northern Territory (NT) government approval for a mining management plan (MMP) for its Jervois copper project.

It is planned to be developed as an open-pit and underground copper-silver-gold mining project.

Consisting of three main deposits, namely Reward, Bellbird and Rockface, the project was acquired by KGL in 2011.