Minter Ellison advised global investment banks Morgan Stanley Australia and CIMB Capital Markets as joint lead managers and underwriters on gold producer Kingsgate’s institutional placement and accelerated non-renounceable entitlement offer.
partners John Elliott and Stuart Byrne acted for Kingsgate, a globally-diversified ASX mid-tier gold and silver exploration and production company.
Minter Ellison partner Daniel Scotti said the timing of the deal was fortunate as the gold price was climbing due to uncertainty arising out of global political events, such as the unfolding situation in Ukraine.
“The deal gives further evidence of the old fact that in times of uncertainty and volatility in the market, people still look to gold as something that is quite safe,” Scotti said.
Since the deal was carried out the gold price has declined by nearly 1.5%.
Scotti believes strong offshore interest in the raising demonstrates renewed foreign interest in Australia’s listed precious metals sector.
A recent $59 million equity raising for an Australian gold producer hit the timing “sweet spot”, claims a partner who advised on the deal.