ISSUE OF SHARES UNDER
PLACEMENT
AND PROPOSED SHARE PURCHASE
PLAN
The Board of King Solomon Mines
Limited (ASX Code: KSO) is pleased to announce a placement of 30.9 million fully
paid ordinary shares at a price of $0.0165 to raise $0.5
million.
The funds
raised are for general working capital purposes, mainly in connection with
exploring the Company’s exploration licences in Inner Mongolia, China. The
company has commenced an in-fill drilling program at its Mud-house gold
prospect targeting the establishment of an initial resource. It also plans
follow up exploration at its promising new gold prospect East Ridge where
it has recently obtained visible gold samples, possibly including an initial
drill program.
The
placement was made to clients of brokers Dayton Way Financial Pty Limited and a
number of other professional investors.
It is
anticipated that an Appendix 3B for the issue of these placement shares will be
lodged on 5 September 2012.
The company also intends to offer a
Share Purchase Plan (SPP) to eligible shareholders of up to a maximum of 30% of
the issued capital at the Record Date. If fully subscribed this would raise
approximately $0.8 million through the issue of approximately 49.9 million
shares at a price of 1.65 cents. Shareholders will be able to purchase up to
$15,000 worth of shares under the SPP at a price of 1.65 cents per share.
Documentation for the SPP will be
released to ASX at the time the above-mentioned placement is finalised.
Eligible shareholders on the register on 28 August 2012 (Record Date) will be
entitled to participate in the SPP.
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