Sydney: Kingwest Resources Limited (“Kingwest”) is preparing for a $5 million initial public offering at a post raising valuation of $10.1 million, and expects to be trading on the ASX boards in early-mid July after lodging its prospectus on 22 May 2018.
The public offer will consist of 25,000,000 new shares at an issue price of 20 cents ($0.20) per share. The proceeds will be utilized to progress the Kingwest tenements and its seven main project areas located across the Eastern Goldfields region. Kingwest has already raised $500,000 in pre-IPO capital to assist in the cost of acquiring highly prospective Eastern Goldfields tenements from Central Iron Ore Ltd (a TSX:V company) and other tenements.
The Kingwest tenements now combine to form an extensive, 959 square-kilometre landholding located between Leonora, Laverton and Leinster (the “Kingwest Gold Project”). The projects, including the 67.68 square-kilometre Emperor Project, are 250 metres away and on the same geological structure that hosts the Endeavor Prospect, where recent drill results have yielded bonanza grade gold intercepts.
These include 4 metres at 50.3 grams per tonne from 43m including 1 metre at 158 grams per tonne from 43 metres; 7 metres at 27.1 grams per tonne including 1 metre at 159 grams per tonne from 46 metres; and 4 metres at 23.2 grams per tonne including 1 metre at 81.8 grams per tonne from 28 metres.
Kingwest also has the right to acquire the Crawfords Deposit project situated on a mining lease, presenting the opportunity for early gold production within trucking distance of a number of toll treatment options.
The Kingwest board includes Non-Executive Chairman, Peter Bennetto, Non-Executive Director Steve Brockhurst, and Executive Director and CEO, Stephen Woodham. Together they hold a combined 70+ years’ corporate and executive experience in banking, finance, corporate advisory, and mining and exploration.
“The world-renowned gold prospectivity of the Eastern Goldfields together with the phenomenal drilling results in the adjacent landholdings underscores the strong prospects for the Kingwest Gold Projects,” said Stephen Woodham, CEO of Kingwest.
“The funds from this listing will allow us to initiate potential early works on our highly-prospective exploration projects and build our resource inventory,” concluded Stephen Woodham.
Peloton Capital will be the lead manager to the public offer.
“The potential for early resource growth from the Crawfords Project is highly attractive for investors,” said Nicholas Downes, Founder & Director of Peloton Capital. “We have seen a good deal of investment demand generally for exciting gold companies, where there is both a potential early production story and the possibility of discoveries. With Kingwest, we believe there is potential for both of these.
“Boasting so many past and present world-class orebodies, there is also no region with greater proven capacity for gold discovery than the Eastern Goldfields of WA,” concluded Nicholas Downes.
For more information on Kingwest: www.kingwestresources.com.au