KNB
Koonenberry Gold Limited
ASX
Transformational NSW Cu/Au Project Acquisition and Raising
Sentiment:
Acquisition Announcement
16 October 2024 6:54 PM
Koonenberry Gold announced a transformational acquisition of a significant NSW gold and copper-gold portfolio, alongside a $4.5 million capital raising.
Capital raise
A $4.5 million capital raise via a placement of 450 million new ordinary shares at $0.010 per share.
The placement was supported by major shareholder Lion Selection Group and new investor Lowell Resources Fund.
Funds will be used for exploration, capital raising costs, and working capital.
Summary
- Koonenberry Gold is acquiring the Enmore Gold Project and Lachlan Projects.
- The Enmore Gold Project is located in the New England Fold Belt, 20km from the Hillgrove Au-Sb Mine, and has shown historic high-grade gold assays.
- The Lachlan Projects are in the Lachlan Fold Belt, near Tier 1 deposits, and have shown historic copper and gold results.
- The acquisitions will give Koonenberry a total land holding of 4,410km2 in NSW.
- Koonenberry has firm commitments for a $4.5 million placement, supported by major shareholder Lion Selection Group and new investor Lowell Resources Fund.
- The placement will issue 450 million new ordinary shares at $0.010 per share.
- Funds raised will be used for exploration ($3.8 million), capital raising costs ($300,000), and working capital ($368,000).
- A new board member, Darren Glover, will join Koonenberry upon completion of the Gilmore Metals acquisition.
- The acquisitions are subject to shareholder approval and other conditions precedent.
Sentiment
Score: 8
Explanation: The announcement is overwhelmingly positive, highlighting significant acquisitions, a successful capital raise, and strong investor support. The only negative aspects are the conditions precedent to the acquisitions, which are typical for transactions of this nature.
Positives
- Acquisition of highly prospective gold and copper assets.
- Significant increase in land holdings to 4,410km2.
- Successful capital raising of $4.5 million, exceeding demand.
- Strong support from existing and new investors, including Lion Selection Group and Lowell Resources Fund.
- Addition of experienced geologist Darren Glover to the board.
- Encouraging historical results from acquired projects.
Negatives
- Acquisitions are subject to conditions precedent, including shareholder approval.
- Historical data quality varies across different projects and operators.
- Significant portions of historical data are incomplete or poorly documented.
Risks
- Shareholder approval for the acquisitions and placement is required.
- Regulatory approvals and waivers are needed for the transfer of project ownership.
- Extinguishment of a 2% net smelter royalty on the Enmore Gold Project is a condition precedent.
- The success of exploration activities is not guaranteed.
- The quality of historical data may limit the ability to fully assess the potential of the acquired projects.
Future Outlook
Koonenberry Gold expects to be in a strong position to fund planned activities with the concurrent capital raising. Management believes the portfolio of projects is extremely value-accretive and has outstanding potential to yield significant discoveries. Near-term drilling is planned at the Enmore Gold Project, and multiple targets across the Lachlan Projects will be advanced to drill-ready status.
Management Comments
- The Koonenberry Gold team is extremely excited to add these highly prospective assets to our gold and copper exploration portfolio.
- The Enmore Gold Project has some exciting historical high-grade gold assays in drilling, rock chips and underground workings with clear targets, a well understood geological model and a near-term opportunity to rapidly advance with drilling.
- With a concurrent capital raising, supported by Lion Selection Group, Lowell Resources Fund as well as our existing and new shareholders, the Company will be in a very strong position to fund its planned activities.
- We believe this portfolio of 100% owned and free carried projects are extremely value accretive for shareholders and have outstanding potential to yield a significant discovery.
Industry Context
This acquisition positions Koonenberry Gold as a significant player in the NSW gold and copper exploration sector, competing with other explorers targeting similar geological terranes. The acquisition of projects with historical high-grade results and the securing of a capital raise demonstrates a proactive approach to exploration in a currently favorable market environment.
Next Steps
- Shareholder approval for the acquisitions and placement.
- Receipt of regulatory approvals and waivers.
- Extinguishment of the net smelter royalty.
- Near-term drilling at the Enmore Gold Project.
- Advancing multiple targets in the Lachlan Projects to drill-ready status.
- Additional surface geophysical work at the Koonenberry Project.
Key Dates
- 17 October 2024: Announcement of transformational acquisition and capital raising
- 29 October 2024: Dispatch of Notice of Annual General Meeting
- 29 November 2024: Annual General Meeting to approve share issues
- 3 December 2024: Settlement of Placement Shares
- December 2024: Expected settlement of acquisitions
Keywords
Gold, Copper, Exploration, Acquisition, NSW, Lachlan Fold Belt, New England Fold Belt, Capital Raising, Placement, Koonenberry Gold
KNB
Koonenberry Gold Limited
ASX
Sector: Materials
Filings with Classifications
Better than expected
21 May 2025 9:08 PM
Investment Announcement
- Koonenberry's drilling results at Enmore exceeded expectations, leading to Lion's increased investment.
Delay expected
19 May 2025 6:24 PM
Exploration Update
- The Phase I drilling campaign is now finished due to extremely wet conditions on site with 10 holes for 3,232.6m completed of a planned 3,000m.
Better than expected
28 April 2025 7:18 PM
Exploration Update
- The drill results indicate a potentially wide structural corridor with significant gold intercepts, exceeding initial expectations for the area away from the granite-sediment contact.
Better than expected
15 April 2025 7:34 PM
Quarterly Report
- The drill results at Enmore Gold Project are better than expected, demonstrating potential for both bulk tonnage and high-grade gold mineralization.
Better than expected
13 April 2025 6:49 PM
Exploration Update
- The second drillhole returned a higher gram metre interval (357.9) than the first drillhole (297.5), indicating improved potential.
Better than expected
6 April 2025 6:22 PM
Investor Presentation
- The intercept of 170m @ 1.75g/t gold incl. 18.3m at 9.95g/t gold from first drillhole at Enmore Gold Project, NSW is better than expected.
Better than expected
3 April 2025 12:51 AM
Investor Presentation Announcement
- The assay results of 170m @ 1.75g/t gold from 77m, including 18.3m at 9.95g/t gold from 172.9m are considered better than expected.
Better than expected
1 April 2025 6:57 PM
Exploration Update
- The assay results from the first drillhole exceeded expectations due to the high-grade intercept and broad zone of gold mineralisation.
- The results validate historical drill results, indicating potential for broad and high-grade gold zones.
Delay expected
16 March 2025 6:42 PM
Exploration Update
- The drilling program has been paused for up to one week due to heavy rains associated with ex-Tropical Cyclone Alfred.
Worse than expected
12 March 2025 1:35 AM
Half Year Financial Report
- The company reported a loss of $925,922 for the half-year ended December 31, 2024, indicating worse than expected financial performance.
Capital raise
12 March 2025 1:35 AM
Half Year Financial Report
- The company's ability to continue as a going concern is dependent on raising additional funding either through debt or equity to meet its planned exploration programme.
- The company will be required to raise funds for working capital from debt or equity sources if the above matters are not achieved.
Better than expected
2 February 2025 4:27 PM
Investor Presentation
- The document highlights significant exploration results, including broad, high-grade gold intercepts at Sunnyside, suggesting better than expected potential.
- The commencement of drilling at multiple projects and the joint venture with Newmont indicate a positive outlook and better than expected progress.
Better than expected
23 January 2025 6:03 PM
Quarterly Report
- The company has made transformational acquisitions that have significantly increased the size and potential of its portfolio.
- The company has reported high grade drilling results at the Enmore project.
- The company has completed a capital raise and is well funded.
Better than expected
19 January 2025 4:19 PM
Exploration Update
- The identification of a 4km gold trend and high-grade sampling results are better than expected for an early-stage exploration project.
Better than expected
6 January 2025 5:28 PM
Exploration Update
- The rock chip results are better than expected, with high grades of gold and copper, confirming the potential for significant mineralization.
Capital raise
29 November 2024 12:31 AM
Securities Quotation Application
- An additional 450,000,000 shares are to be issued on December 5, 2024.
Capital raise
28 November 2024 11:47 PM
Annual General Meeting Results
- Approval was granted for a 10% placement capacity.
- Approvals were given to issue shares related to Enmore, Lachlan, and director placements.
Delay expected
28 November 2024 6:42 PM
Investor Presentation
- Planned discovery activity is subject to changes due to various factors including regulatory approvals and inclement weather.
Better than expected
28 November 2024 5:22 PM
Annual General Meeting Report
- The successful acquisition of the Enmore and Lachlan projects significantly expands Koonenberry Gold's exploration portfolio and increases its potential for major discoveries.
Delay expected
26 November 2024 8:41 PM
Securities Issue Update
- The issue date of the Placement Shares was delayed by one day, from December 4th to December 5th, 2024.
Worse than expected
17 November 2024 6:17 PM
Exploration Update
- The second phase of drilling at the Atlantis prospect did not yield significant copper or gold intersections, despite the presence of trace amounts of sulphides, indicating that the targeted mineralisation may be located further from the drillholes or at greater depth than initially anticipated.
Delay expected
17 November 2024 6:17 PM
Exploration Update
- The first phase of air core drilling at Atlantis was terminated early due to limitations in the rig configuration and air pressure, preventing the testing of three identified EM conductors and limiting the extent of the surveyed area.
Capital raise
28 October 2024 7:44 PM
Notice of Annual General Meeting
- A $4.5 million capital raising (before costs) is planned through a placement of shares.
- Directors have committed to subscribing for up to $200,000 of the placement.
Capital raise
16 October 2024 7:55 PM
Investment Announcement
- Koonenberry Gold is undertaking a \$4.5 million capital raising.
Capital raise
16 October 2024 7:20 PM
Investor Presentation
- A capital raising of at least A$2,000,000 is planned, with commitments already secured for A$4,500,000.
- The capital raising will fund the acquisition of the Enmore Gold Project and Lachlan Projects.
Capital raise
16 October 2024 6:54 PM
Acquisition Announcement
- A $4.5 million capital raise via a placement of 450 million new ordinary shares at $0.010 per share.
- The placement was supported by major shareholder Lion Selection Group and new investor Lowell Resources Fund.
- Funds will be used for exploration, capital raising costs, and working capital.
Capital raise
14 October 2024 6:49 PM
Trading Halt Announcement
- A capital raising is planned in association with a material acquisition.
Capital raise
12 September 2024 4:15 AM
Annual Report
- A share placement and fully underwritten entitlement offer raised $2,352,537 before costs in April 2024.
Delay expected
12 September 2024 4:15 AM
Annual Report
- Drilling at the Atlantis Prospect was unable to penetrate to planned depths due to hard and silicified ground, resulting in an early termination of the program.
Worse than expected
3 September 2024 7:59 PM
Exploration Update
- The drilling program was significantly shorter than planned due to unforeseen weather conditions, resulting in fewer drill holes and less data than anticipated.
Delay expected
3 September 2024 7:59 PM
Exploration Update
- A significant rain event forced an early termination of the drill program at Atlantis, resulting in a compromised program with only 6 holes completed instead of the planned 16.
Delay expected
30 July 2024 7:16 PM
Exploration Update
- The drill program in June was terminated early due to a significant rain event.
Delay expected
23 July 2024 8:01 PM
Quarterly Report
- A significant rain event occurred after the reporting period, resulting in demobilisation of equipment and crew, delaying further exploration.
Better than expected
12 June 2024 7:55 PM
Exploration Update
- The gold zone has been extended to the east and 200m to the south, expanding the gold footprint to over 500m x 400m.
Delay expected
27 May 2024 7:18 PM
Exploration Update
- The initial drilling program was terminated early due to rig limitations, preventing the testing of the three EM conductors.
Worse than expected
21 April 2024 7:02 PM
Project Update
- The drilling at Atlantis did not reach the target depth due to difficult ground conditions, which is worse than expected.
Delay expected
21 April 2024 7:02 PM
Project Update
- Drilling at Atlantis was delayed due to unexpected difficult drilling conditions (hard ground).
Delay expected
19 April 2024 4:14 AM
Rights Issue Results and Revised Timetable
- The issue and settlement of Rights Issue shares has been revised from the timetable previously announced to the ASX on 8 March 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.