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- Kin Mining (KIN) eyes $20.4 million to advance its Cardinia project in Western Australia’s Goldfields-Esperance region
- The capital raise comprises of a $9.7 million placement with shares offered at 7.5 cents, of which new investors contributed $5 million and existing shareholders, $4.7 million
- A non-renouncable entitlement offer to raise a further $10.7 million will open to existing shareholders on August 29 on a one-for-seven basis at the same price as the placement
- The funds will underpin KIN’s next phase of growth at the Cardinia project where it remains confident its tenure will yield further significant discoveries
- KIN shares resumed trade today and drop 14.3 per cent to close at 7.8 cents
Kin Mining (KIN) is eyeing $20.4 million to advance its Cardinia project in Western Australia’s Goldfields-Esperance region.
The gold exploration company’s capital raising comprises of a $9.7 million placement with shares offered at 7.5 cents each, and a proposed entitlement offer at the same issue price to raise a further $10.7 million.
The issue price represents a 16.7 per cent discount to the last traded price of nine cents per share on August 12.
Under the placement, existing shareholders contributed $4.7 million and $5 million came from new investors, which KIN said demonstrates “strong continuing support” of its strategy.
In strengthening its balance sheet with the fresh capital, KIN plans to carry out the next phase of growth at its Cardinia project and follow up discoveries and targets identified through its past exploration campaigns.
Over the past three years, Managing Director Andrew Munckton said the work undertaken has been “exciting and rewarding” with around 200,000 metres of drilling completed and 494,000 ounces of mineral resources added.
He said the work completed to date has “transformed” the company’s understanding of the field and KIN remains convinced its tenure will yield further significant discoveries.
“We believe Kin can continue to identify new, shallow deposits that are the surface expression of larger and higher-grade mineralisation in the underlying fresh rock,” Mr Munckton said.
“We have plans to drill significant new targets throughout the next 12 months across a range of established and new prospects, as well as assessing other opportunities within the broader Leonora district.
“The quality of these exploration targets and the strength of support for this capital raise means we can expect strong news flow over the coming months, commencing with a mineral resource update scheduled for September.”
Shareholders on the company’s register by August 26 are eligible to participate in the pro rate rights issue of new shares on the basis of one new share for ever seven existing shares held.
The offer is scheduled to open on August 29 and will close on September 12.
KIN shares resumed trade today and dropped 14.3 per cent to close at 7.8 cents.
