Kinetic Development has entered into a share placement agreement, the company announced.
On June 3, 2026, following the close of trading, the company executed a placement pact with a sole placing agent.
Under the terms of the agreement, Kinetic Dev (ASX: 01277) has conditionally agreed to issue 170 million new shares at a price of HK$1.85 per share.
The placement will be conducted on a best-efforts basis to no fewer than six independent placees.
The placement price represents a discount of approximately 12.74% to the closing price of HK$2.12 per share on the date the agreement was signed.
The new shares to be issued account for about 2.01% of the company's total issued share capital as of the announcement date.
Allocation of Proceeds
The company intends to use the estimated net proceeds of approximately HK$309 million for several key purposes.
The funds are primarily earmarked for procurement related to the mining and transportation operations of its South African subsidiary.
A portion will also be used to supplement the working capital of MC Mining Limited, a 51%-owned non-wholly owned subsidiary of the group.
Further allocations are intended for equipment purchases and operational expenses related to the group's rutile mining project in Sierra Leone.
The remaining proceeds will be allocated for general working capital needs and other corporate purposes required for project development.
The board of directors or its authorized persons retain the discretion to adjust the specific use of the proceeds.
Any adjustments will be based on the operational conditions and actual needs of the company or the group, taking into consideration any relevant feedback received from applicable regulatory bodies.
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