Major partner brought on

The company said in a statement to the ASX on Thursday that it had entered into a precious metals purchase agreement with Wheaton Precious Metals Corp, which will, in part, fund the construction and development of KGL's mining project.

The funding agreement provides US$275 million as an upfront consideration and US$25 million as a contingent cost overrun.

The main lump sum will be provided as US$32 million available prior to any construction expenditure, and US$243 million available in four tranches following the achievement of certain construction milestones.

The company said regarding the agreement:

With the necessary development and mining permits in place, the precious metals purchasing agreement represents a major step forward towards development of the Project, positioning KGL to become the next meaningful Australian copper producer. This is Wheaton's first streaming transaction in Australia and follows Wheaton's entry into a streaming agreement in respect of BHP's portion of the Antamina mine, announced in February 2026.

The company added that work on progressing towards mining was ongoing.

KGL is in the process of finalising the scope and cost of the process plant construction contract, updating the production schedule, providing for price escalation (where applicable) and incorporating changes resulting from movements in commodity prices. KGL expects its review of these items (which remains ongoing) to result in changes to the technical and economic framework for Project delivery, as set out in the 2025 Feasibility Study Update (announced 10 February 2025). Specifically, KGL expects both overall Project capital costs and revenue forecasts to increase. KGL's expects to be able to provide an update by May 2026.

KGL said it remained in active dialogue with global metals traders and potential offtake partners, "as well as other capital providers and arrangers to finalise the full funding of the Project''.

Further equity raise potential

The company said that, in addition to the US$300 million funding package, Wheaton had also agreed to participate in any future equity raise to fund the Jervois mine.

KGL Chief Executive Officer Sam Strohmayr said regarding the new deal:

This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production. The near-term availability of the early deposit ensures we can maintain our development schedule, and we are now on the cusp of breaking ground on Australia's next major copper mine.

KGL shares were 45.2% higher at 30.5 cents in early trade.

The company was valued at $162 million at Wednesday's close.

The post Why are shares in this ASX copper developer surging more than 45%? appeared first on The Motley Fool Australia.

Shares in the mineral exploration company were swapping hands at 64.5 cents at market close, up 34.38%.

KGL Resources is focused on exploring and developing the Jervois Base Metal Project in the Northern Territory.

Record results

In today's announcement, KGL Resources reported a mammoth assay of 61.4% copper within the Rockface diamond drill hole located at the Jervois project.

The miner said this percentage was within an intercept of 20.5% copper and 302 grams per tonne of silver across 4.21 metres.

The company also revealed it has discovered two new massive sulphide deposits.

In total, six drill intercepts have been found to contain massive sulphides across a distance of more than 160m. Mass sulphides are discoveries that could be rich in metal including copper.

As previously reported by Motley Fool Australia, the KGL Resources share price soared to a 5-month high in November on the back of initial assay results from the Rockface drill hole.

The company will continue drilling at Rockface and assessing the results.

Management comment

Commenting on the copper update, KGL managing director Simon Finnis said:

The new record copper assay from hole D6 at Rockface is extraordinary. Mineralogically, it represents 97% pure bornite and confirms the previous visual estimate.

More importantly, together with previous results and the new visual mineral intersections announced here, they demonstrate that the high-grade shoot of massive sulphides has significant dimensions and grades that bode
well for the future.

SKGL Resources share price snapshot

In the past 12 months, the KGL share price has soared more than 124%. The company's share price reached a 52-week high of 84.5 cents in April. The yearly low was 25 cents in December last year.

KGL Resources commands a market capitalisation of roughly $253 million at the time of writing.

The post KGL Resources (ASX:KGL) share price rockets 34% on copper update appeared first on The Motley Fool Australia.

At the time of writing, the miner's shares have risen 14.17% to 68.5 cents. It's worth noting that during early afternoon trade, KGL shares touched the 70.5 cent mark, a level not seen since June 2021.

Why has the KGL shares accelerated?

In the release, KGL advised it has intersected a zone of massive sulphides containing copper minerals, bornite and chalcopyrite.

Received assay results confirmed high-grade copper deposits as well as silver content from its diamond drill hole KJCD481D3 (D3).

In addition, KGL noted a new intersection of massive sulphides in hole KJCD481D6 (D6). The targeted Rockface North lode area is around a 40 metres up-plunge from the original intersection in D3.

As such the highlighted results are listed below:

• 23.6% copper (Cu) & 503 grams per tonne of silver (Ag) over 3.5 metres from a 725.35 metre downhole
• Includes 37.4% Cu & 1,106 g/t Ag over 1.51 metres from 725.35 metre downhole
• Includes 40.9% Cu & 1,427 g/t Ag over 0.78 metres from 725.35 metre downhole
• 40.9% Cu is the highest assay ever obtained in Jervois drilling

KGL revealed that follow-up drilling continues on the western side of Rockface while the second rig has now commenced drilling the shallower Reward Gap targets.

Samples from D6 have been prioritised as Australian laboratories manage through the workload. The assay results are expected to be delivered within the next several weeks.

KGL managing director, Simon Finnis commented:

Over 100,000 drill samples have been assayed for copper over the decades at Jervois and it is very gratifying to obtain the highest ever copper assay in the most recent set of results from Rockface.

Even more encouraging is the fact that 3 follow-up holes drilled after the KJCD481D3 discovery have all intersected zones of copper – bearing massive sulphides. The most recent hole, KJCD481D6, appears particularly significant due to its visually estimated high bornite content and it position 40 metres up- plunge from D3, indicating a scale of the high-grade target beyond expectations from the recent down- hole EM modelling.

About the KGL Resources share price

Looking back to the last 12 months, the KGL share price has accelerated over 120% for shareholders. The company's share price reached a 52-week high of 84.5 cents in April.

KGL commands a market capitalisation of roughly $272.66 million and has approximately 392.32 million shares outstanding.

The post Why is the KGL (ASX:KGL) share price up over 14% today? appeared first on The Motley Fool Australia.

Let's take a closer look at the quarter that's been for KGL Resources.

Balance sheet boost

While KGL's results for the quarter ending 31 March 2021 weren't the strongest, it wasn't all doom and gloom.

The company reported very little in the way of income from its operating activities – just $64,000. After employee and operating expenses, KGL reported a loss of $368,000 over the course of the quarter.

In late February, the company conducted an institutional placement, earning itself around $23.7 million (before costs) in the process. This has left the company with a little more than $24 million in the bank at the end of the quarter.

KGL holds no debt and has an estimated $17.5 million in cash ready to use on future operating activities – a large increase from the $7 million it had at the end of the previous quarter.

Project update

During the quarter, KGL continued developing its Jervois Copper Mine Project in the Northern Territory. It is now working towards attaining its feasibility study.

The project's pre-feasibility study found it could support a mining operation at the rate of 30,000 tonnes of copper concentrate, as well as gold and silver, per year for an initial 7.5 years.

The company states it is working to improve the quality and size of the resource, extend its mine life and improve its economics.

This quarter was the first in which the company could begin drilling at the site once more after the project was shut down for 12-months following the COVID-19 pandemic. Drilling recommenced in February.

Part of the capital raise completed by KGL this quarter went towards funding a second drill rig for the Jervois Project. According to the company, 11 holes were drilled at the project over the last quarter, with assay results expected in the June quarter.

KGL Resources share price snapshot

While today's news hasn't been kind to the KGL Resources share price, its performance on the ASX of late has given it some wiggle room.

Currently, the company's shares are up by around 185% year to date. They are also up by around 380% over the last 12 months.

KGL Resources has a market capitalisation of around $327 million, with approximately 387 million shares outstanding.

The post KGL Resources (ASX:KGL) share price slumps 9%. Here's why appeared first on The Motley Fool Australia.

This meteoric rise in the company's shares comes off the back of yesterday's announcement that it received a mining management plan approval, which saw its share price rise by 24.53% in one day.

So far today, the miner's shares have risen another 12.12% to 37 cents. This reflects a significant increase in the KGL share price of more than 37% since the start of the week.

Why has the KGL share price accelerated?

Yesterday, KGL announced the Northern Territory government has given the green light for a mining management plan for the company's Jervois copper project.

A primary objective of a mining management plan is to formalise mining developments that will be carried out on site. The plan ensures that the environment is impacted at a minimum over the course of the mine life.

The approval was a key requirement in developing the Jervois project as a low-cost copper mine. The company estimates the site to have 9.4 million tonnes of copper at a high grade of 2.41%. This comes as the world is seeing a decrease in quality of the base metal, thus highlighting the superiority of the Jervois mine.

KGL believes that demand for copper will surge as the market moves to using more green energy and electric vehicles. In addition, demand from traditional applications that use copper such as construction, electricity transmission, communication and consumer goods is also expected to rise.

Following the approval, Kentor Minerals (owned by KGL) will seek to develop the mine, which will include processing and production of a copper concentrate and lead/zinc concentrate.

What did KGL management say?

KGL chair Mr Denis Wood commented on the pleasing outcome, saying:

The recently announced Pre-Feasibility Study (PFS) results show that the high-grade Jervois deposit will support a robust initial 7.5-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource.

The new information will be fed into the full Feasibility Study (FS) which now has the Company's highest priority. Work is already well advanced on the FS which we expect will improve the economics of Jervois even further.

With the PFS completed and the authority to mine now in place, discussions have begun on project financing and the marketing of the mine's concentrate.

About the KGL share price

Looking back to the last 12 months, the KGL share price has risen over 60%. The miner's shares suffered a dip during the March crash where investors were able to pick up its shares for 9.4 cents, but shares have since rebounded strongly.

On current prices, KGL has a market capitalisation of $110.79 million.

The post Why the KGL (ASX:KGL) share price is up 37% this week appeared first on The Motley Fool Australia.

Shares in the explorer surged 35.3% to 23 cents in morning trade when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) struggled to stay in the black.

The overnight jump in the copper price is helping the sector outperform the broader market. The OZ Minerals Limited (ASX: OZL) share price and BHP Group Ltd (ASX: BHP) share price gaining 0.5% each, but its KGL that's being celebrated today.

KGL share price jumps on copper upgrade

Management significantly increased its copper estimates for its wholly-owned project in Northern Australia.

The copper grade doubled to 2.03% from 1.07%. KGL also reported a 30%increase in contained copper to 426,200 tonnes associated with a 31%reduction in the resource tonnage.

The project is also deemed to hold 21.4 million ounces of silver and 175,700 ounces of gold. Given the high prices of both metals, they will go a long way in lowering the costs of extracting the copper.

KGL also noted an increased confidence in the Jervois resource with 68% now in the Indicated Resource category.

Jervois looking better than thought

"We committed to a new strategy of concentrating on understanding the geological structures. State of the art technologies were employed to plan efficient drilling that would confirm the structures," said KGL chair Denis Wood.

"Ultimately, this resource outcome – 30% more copper, a near doubling of grade and greater confidence levels – should have a positive impact on the mining and processing cost.

"A pre-feasibility study, including an Ore Reserve based on this Resource Estimate, and other project planning work is now being completed and is expected to be ready for release during the fourth quarter of 2020."

The resource update includes the three main deposits considered for development –Reward, Rockface and Bellbird. Resources at Reward South will be re-assessed in the future.

Copper benefiting from multiple tailwinds

The outlook for copper looks positive for 2021 as output from the world's largest copper producing mine, Escondida, is hampered by the COVID-19 outbreak in Chile.

Other significant copper projects have also suffered setbacks and supply of the red metal could tighten. The imbalance is happening at a time demand is rebounding.

Global factory output is recovering strongly after the sudden hit from the pandemic. Copper demand is closely linked to industrial activity.

What's more, the trend towards electrification of vehicles will put even greater pressure on supplies. Electric vehicles use three times more copper than a conventional vehicle.

Despite today's big rally, the KGL share price lost around 18% of its value over the past year.

The post KGL Resources (ASX:KGL) share price surges on big upgrade appeared first on The Motley Fool Australia.