Kin Mining NL (ASX:KIN)’s major shareholder Delphi AG has provided a short-term bond facility for $3 million to underpin drilling activities along the Eastern Corridor of the Cardinia Gold Project (CGP) in WA.
The additional funds will keep up drilling momentum so the company can evaluate emerging high-grade targets along the corridor while it completes a recently announced entitlements issue to raise up to $19.2 million.
Kin feels its drilling programs at key Eastern Corridor targets are progressing well and expects a steady flow of news in the coming weeks as further results come in.
Short-term bond facility
The short-term facility consists of a single ‘bearer bond’ with a face value of A$3 million, which will considerably strengthen the company’s balance sheet.
These funds will enable Kin to continue exploration work on the recently drilled deeper holes along the Eastern Corridor at CGP, where it eagerly awaits assay results to finalise follow-up drilling.
In addition, funds will allow ongoing exploration to continue to develop shallower discoveries along the Eastern Corridor, including Cardinia Hill, East Lynne, Rangoon, Fiona and Helens East.
The facility is repayable within three months and carries an interest rate of 8% per annum. The company intends to repay the funds from the proceeds of the current entitlement issue.
Emerging high-grade positions
Kin managing director Andrew Munckton said: “We continue to appreciate the incredible support of our major shareholder, both in making a firm commitment to the rights issue announced on January 18, 2023, and in providing this short-term funding facility.
“This short-term facility will enable Kin to continue current exploration activities including processing of assays from diamond drilling and undertaking further reverse circulation (RC) drilling to evaluate emerging high-grade positions along the Eastern Corridor while we await funds from the rights issue.”