The company received binding commitments for a placement of 40 million shares to new and existing institutional and sophisticated investors to raise $6.4 million.

The issue price is 16c per share, a 13.5% discount to the last closing price, and a 10.6% discount to the five-day volume-weighted average price.

Canaccord Genuity acted as lead manager.

Kingston will also undertake a share purchase plan at the same price to raise a further $2 million.

The raising was conducted off the back of an increase in the Misima resource to 3.2Moz, including a 1.52Moz indicated resource that will pave the way for a maiden reserve and prefeasibility study.

The funds will be used for the PFS, permitting and further drilling, as well as exploration at the Livingstone gold project in Western Australia.

Kingston managing director Andrew Corbett said the company was encouraged by the support for Misima.

"The rest of 2020 will be exciting for Kingston shareholders as we work towards the completion of the PFS and reporting a maiden ore reserve at Misima," he said.

"Following the significant structural work completed earlier in 2020 we are also excited to get back into drilling the Livingstone project in WA, with the objective of delineating a maiden JORC mineral resource at Kingsley."

Kingston will receive a further $650,000 via the sale of royalties over the Higginsville gold operation to Vox Royalty Corp, comprising $350,000 cash and $300,000 in Vox shares.

Kingston had had $2 million cash at the end of March. Its last raising was $3.1 million at 1.6c per share in August, prior to a one-for-10 share consolidation.

Canaccord has a speculative buy rating and 85c price target for Kingston.

"Our development scenario for Misima assumes capex of $445 million for a 5Mtpa operation starting 2023, producing an average of 160,000ozpa at circa $1300/oz AISC over a circa 10-year mine life," analyst Reg Spencer said last week.

"While we expect studies to firm up project parameters and timelines, we highlight that Misima now presents as one of the largest development opportunities in its pre-production peer group.

"In our view, this also highlights potential corporate appeal given Kingston's current market valuation."

Kingston shares last traded 1.6% lower at 18.2c, valuing the company at about $32 million.