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Kula Gold Limited (ASX:KGD) Announces Entitlement Offer

ClubAI 10:28 am

Entitlement Offer Details

Kula Gold Limited (ASX:KGD) will undertake a non-renounceable pro-rata entitlement offer to raise approximately $1.6 million. Shareholders will be entitled to one new share for every two shares currently held at an issue price of $0.005, representing a 16.7% discount to the last trading price. The Directors have committed to take up their full entitlements, totalling $122,343.

Use of Funds

The proceeds will primarily fund exploration activities at the Mt Palmer Gold Mine and repay a related party loan of approximately $470,000. Under an earn-in agreement, Kula can acquire an additional 29% interest in the Mt Palmer Gold Mine Tenements by incurring $1 million in exploration expenditure.

Operational Focus

The Company has streamlined its operations by relinquishing underperforming tenements, sharpening its focus on the Mt Palmer Gold Mine where increased exploration potential has been identified through recent work.

Indicative Timetable

The acquisition period will be conducted from 14 January 2025 to 23 January 2025, with shares expected to commence trading by 3 February 2025.

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Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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