- Kin Mining (KIN) rejects St Barbara’s (SBM) non-binding indicative proposal to purchase the company
- This deal has been rejected by the Kin Board as the deal wouldn’t have reached the needed 75 per cent shareholder vote
- Additionally, the company also intends to raise $13 million through an entitlement offer
- On the market this morning, Kin was up 16.7 per cent and is trading at 12.3 cents per share while SBM is 3.55 per cent up at $1.46 at 1:05 pm AEDT
Kin Mining (KIN) has rejected St Barbara’s (SBM) non-binding indicative proposal to purchase the company.
The proposal saw St Barbara offer to purchase Kin shares at 16 cents each.
This deal has been rejected by the Kin Board as the deal wouldn’t have reached the required 75 per cent shareholder vote.
Kin Managing Director Andrew Munckton commented on the proposal.
“The Kin Board welcomed the continued interest from St Barbara noting that the proposed NBIO price suggests that the current Kin share price is significantly undervalued,” Mr Munckton said.
“The Kin Board remains focussed on progressing company activities
to maximise the value of the company for all shareholders.”
Additionally, the company also intends to raise $13 million through an entitlement offer.
The entitlement offer will be offered to eligible shareholders and will be priced on the recent share trading once details have been settles.
Funds from the raise will be used to progress the next phase of exploration at Cardinia Gold Project, located near Leonora in Western Australia.
“We’ve had considerable success converting our improving geological understanding into exploration results, and then converting those results into additional Mineral Resources,” Mr Munckton told the market.
“At Cardinia Hill, we have successfully added 106,000 ounces of new mineral resources, while the Bruno-Lewis Mineral Resource has been expanded by 20 per cent to 374,000 ounces.”
“The additional funding will allow us to continue to assess the recent discoveries at Cardinia Hill and follow up on new prospects like Mt Flora, Eagle and Crow – in short to maintain the very strong exploration momentum we have built up over the past two years.”
On the market this morning, Kin was up 14.3 per cent and is trading at 12 cents per share at 11:57 am AEDT.