Kingsrose expands share placement

By Romel S. Gurky

ASX-listed Kingsrose Mining Limited said on Thursday that it has agreed to accept a further A$0.5 million under the second tranche of its share placement at 12 cents a share.

This increase, which is in response to investor demand, takes the total amount raised to $9 million, the company said in a statement.

Kingsrose also said that one of the company?s lenders, Michael John Andrews, has agreed to reduce the amount outstanding under his loan facility via a share subscription. This will see the loan balance reduced by US$500,000 in return for the company issuing him shares at a deemed price of 12 cents, being the same issue price to sophisticated investors in the placement. This issue of shares to Andrews will be subject to shareholder approval.

As previously announced, Kingsrose, Andrews and the company?s other lenders, Beaurama Pty Ltd and Great Golden Investment Limited, have reached an in-principle agreement to defer debt repayments until July 2017.

Kingsrose Executive Chairman John Morris said the demand for the placement and ongoing support provided by the company?s lenders were strong votes of confidence in the outlook for the Way Linggo Project and the potential of the Talang Santo Mine, in Indonesia?s South Sumatra province, to deliver high-grade, low cost production.

?The proceeds of the Placement will help fund completion of the external haulage shaft to the 5 Level which will in turn underpin increased production rates and lower costs,? Morris said in the statement.

?With our financial position strengthened considerably and the review of our mining practices and water management strategy now well advanced, we are moving towards unlocking the true value of Talang Santo.?

Editing by Reiner Simanjuntak