Kin Mining NL (ASX:KIN) has launched a rights issue to raise up to $12.92 million that will allow drilling to continue across a number of emerging discoveries and expand its 1.28-million-ounce inventory at the flagship Cardinia Gold Project (CGP) near Leonora in Western Australia.
The non-underwritten pro-rata 1-for-6.5 non-renounceable entitlement offer at $0.105 per share is available to all eligible shareholders who are invited to subscribe for one new share for every 6.5 shares held.
Substantial shareholders commit
In a strong start to the equity raising, the company has received confirmation from two of its substantial shareholders that they intend to subscribe for all or a substantial portion of their entitlements in the offer.
Collectively these two shareholders have provided commitments to subscribe for 30% of the entitlement offer with a total value of $3.84 million.
Adding new resources
Kin managing director Andrew Munckton said: “We’ve had considerable success converting our improving geological understanding into exploration results, and then converting those results into additional mineral resources.
"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% to 374,000 ounces.”
Next phase of exploration
The funds raised will provide Kin with sufficient working capital to complete the next phase of systematic exploration work at the CGP and to follow up on the exciting new discoveries and targets identified as part of its successful drilling campaigns completed during 2020 and 2021.
These include the emerging discoveries at Mt Flora and Iron King, as well as multiple new prospects which have been identified following significant improvements in the company’s understanding of the geology and potential of the CGP such as the Eagle and Crow prospects.
Maintaining momentum
“Our systematic approach to exploration has paid off in spades and given us a much better idea of where and how to target the next phase of drilling – which will be designed both to define new resources and to identify additional discoveries with the potential to deliver a step-change in the scale of the project.
“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.
“These other targets have been identified by recent soil geochemistry and modern geophysical surveys over largely untested areas within the highly mineralised Cardinia area. We expect this work to generate new follow-up programs of work stretching into 2022.”
Exploration plans
The company has adequate cash for its current activities and is completing this raise to fund future exploration plans.
An indicative use of funds from the entitlement offer proceeds is:
Offer details
The offer price represents a 19% discount to the closing price on October 8, 2021, of $0.1300, a 13.6% discount to the 5-day VWAP price of $0.1215 and 12.6% discount to the 10-day VWAP price of $0.1201.
New shares issued under the offer will rank equally with existing shares on issue and the company will apply for official quotation of the new shares.
The company will not accept applications for shares in addition to shareholders’ entitlements but will retain the right to place the shortfall on no worse terms in the three months following the completion of the offer.
The proposed timetable for the entitlement offer is:
