- Koonenberry Gold set-up for exploration programme to begin
- Successful ASX listing on 28 September 2021 after raising $8m
- New board and management appointments
Koonenberry Gold Ltd (ASX:KNB) is pleased to report on a successful quarter culminating in an $8M capital raise and listing on the ASX on 28 September 2021.
Koonenberry has been exploring over the last 4 years, prior to listing, and has expanded earlier work undertaken by other explorers. The Company’s forthcoming exploration activities will utilise all collected multi-disciplinary data to create a 3D geological model of the Koonenberry Gold Project in north western New South Wales, which will drive the definition and prioritisation of the drill programme.
Koonenberry Gold CEO, Karen O’Neill, said: “We have had an excellent start to FY22 with the successful listing and capital raise. The Board and Management believe this sets up Koonenberry to have a solid opportunity to test for an economic gold resource at the Koonenberry Gold Project, located in New South Wales.”
The Company is pursuing large gold deposits and is working to define a number of clear targets for drilling in the first quarter of 2022.
- Scheduled: Koonenberry will conduct a comprehensive structural geology review to define the geometry and location of host rocks, their structural evolution, architecture and alteration fluid characteristics.
- Being Implemented: Further soil sampling to complement the work done to date with a focus on defining key targets in readiness for drilling as well as identifying new targets.
- Implemented: Pulps have been received from all past soil sampling programmes and Koonenberry are undertaking a programme of multi-element geochemical characterisation. This will assist not only in identifying pathfinder elements of interest in gold exploration, but also other mineralisation styles which have never been previously investigated.
- Underway: A programme of 441 infill soil samples has been delivered to the laboratory for assay. This programme has focused on regional reconnaissance as well as additional infill. These results are expected to be reported in November.
- Underway: Geophysical interpretation of data collected in the northern part of the Project which among other data may assist in identifying which orientation is the favourable structural trend.
- Completed: Geological desktop study and interpretation of available geophysical and geochemical data relating to our primary target area, Lucky Sevens. Koonenberry has uncovered potential for multiple repetitions of the Lucky Sevens prospect, including targets buried under cover which have never been investigated. (Refer to ASX Announcement of 6 October 2021).
- Completed: Extension of gold anomalous regions, particularly Lucky Sevens (over 2.5km long and up to 450m wide); Atlantis (over 5.5km long and up to 100m wide); and Four Queens (over 4km long and up to 100m wide), from assay results of an infill and extension soil sampling programme. (Refer to ASX Announcement of 14 October 2021).
To date, works have mainly involved prospecting, costeaning and bulk sampling. There has been soil and rock chip sampling and limited drilling. Primary mineralisation remains untested.
Activities undertaken in the quarter related to pre-IPO and IPO activities. The Company did undertake works such as collecting and storing samples from site and executed planning for the work ahead. No other exploration or mine development activities were undertaken.
The Company will continue to update the market on the outcomes of the studies and assays while we build the geological model and define the drill programme.
The Company would like to note that the travel restrictions imposed in some states on the return from New South Wales, due to the COVID-19 outbreak, has had a minor impact on scheduled activities. At the time of finalising this announcement some travel restrictions are being reviewed and Koonenberry is confident that activities will return to normal in the near-term.
As at 30 September 2021, Koonenberry had a cash balance of A$7.5 million and no debt.
Exploration and evaluation expenditure incurred during the quarter was $91K (excluding GST).
New Board appointments were made as the prospectus for the initial public offer was lodged and are the first steps in accelerating the development of the Koonenberry Gold Project.
On 30 June 2021 the existing Board made up of Neil Dunn, Non-Executive Director, Kieran Purcell, Non-Executive Director and George Rogers, Managing Director, all stood down from the Board of Koonenberry Gold Limited and the following appointments were made on 30 June 2021:
Mr. John Elkington (MSc, FAusIMM, FAICD) (Non-Executive Chair)
Mr. Elkington is a professional company director and independent mining consultant. He has over 40 years’ experience in managing and directing public companies and was founding director of Pilbara Laboratories, Ammtec Limited and head of Snowden Mining Industry Consultants in the UK.
Mr. Elkington is currently non-executive chairman of ASX-listed TNG Limited. He has held no other directorships in public listed companies in the last three years.
Mr. John Hobson (MBA, BSC(Hons), GAICD) (Non-Executive Director)
Mr. Hobson is a capital markets and investor relations executive with extensive investment banking and corporate experience in Australia, Asia, and the US. Wide ranging experience across energy, infrastructure, logistics and banking and finance. He has successfully executed large, complex acquisition funding utilising innovative structures and negotiated multiple debt refinancings.
Mr. Hobson has held no other directorships in public listed companies in the last three years.
Mr. Anthony McIntosh (BCom, GAICD) (Non-Executive Director)
Mr. McIntosh has extensive experience in investment marketing, investor relations and strategic planning, with a focus on small caps, as well as a strong and well-established network of stockbroking and investment fund managers. Mr. McIntosh currently runs the McIntosh family investment company which invests in listed and unlisted securities and property. Mr. McIntosh was a Board member of Echo Resources Limited from 2013 to 2019, which was acquired by Northern Star Resources (ASX:NST) in 2019 for $235m. He resigned from the position in November 2019, and as a non-executive director of Symbol Mining Ltd in (February 2021).
Mr. McIntosh is currently non-executive director of ASX Listed Companies: Strategic Energy Resources Limited, Alice Queen Limited, Copper Strike Limited and K-Tig Limited.
The new Board brings a wealth of experience together in exploration, resources and capital markets and is looking forward to unlocking the full potential of Koonenberry Gold Limited.
RELATED PARTY PAYMENTS IN QUARTER TO 30 SEPTEMBER 2021
Non-Executive Director Fees $60,499
SRG Advisory and Accounting Fees $130,130
Consulting fee $7,300
At 30 September 2021 no other payments to, or to an associate of, a related party of the entity that the Directors are aware of.
ACTUAL EXPENDITURE SINCE LISTING COMPARED TO “USE OF FUNDS” IN PROSPECTUS
Listing Rule 5.3.4 requires the Company to provide a comparison of actual expenditure to date since listing on 28 September 2021 against the use of funds statement in the Prospectus dated 2 July 2021.
|Use of Funds||Use of Funds Statement $’000’s||Actual spend28 to 30 September 2021 $’000’s|
|Future Acquisition Costs||1,000||–|
|Expenses of the Offers||798||550|
All costs spent to date are aligned with Koonenberry’s expected use of funds as outlined in the Prospectus dated 2 July 2021.
CAPITAL STRUCTURE AT 30 SEPTEMBER 2021
Ordinary Fully Paid Shares 119,749,088
Options 12,978,000 (various strike prices and expiry dates)
Performance Rights 5,850,000 (various performance hurdles and expiry dates)
Of the issued ordinary shares, 46,512,855 (38.8%) of them are restricted shares.
This ASX release was authorised by the Board of the Company.