Kin Mining has raised $7 million for current and future exploration efforts in a non-renounceable rights issue that attracted strong support from shareholders.
Subscriptions were received for 66,498,202 entitlement shares in the offer of one new share for every 6.5 shares held at an issue price of $0.105 per new share.
The company is encouraged by the response with the offer announced in October now closed, attracting a 54% uptake rate.
Use of funds
“The funds raised will enable us to maintain significant exploration momentum across the Cardinia Gold Project, where our systematic and multi-pronged approach to exploration and resource growth continues to pay dividends,” Kin Mining managing director Andrew Munckton said.
The company’s Phase 5 drilling program is in full swing: “An initial 3,000 metres of RC drilling has recently been completed at Mt Flora and results from the maiden AC drilling program at the new Pegasus target at Cardinia are imminent as we assess the multiple other exciting targets and emerging discoveries across the project," Munckton continued.
Entitlement offer shares are scheduled to be issued to shareholders on November 12, 2021.
There is a shortfall remaining of 56,522,682 new shares and KIN retains the right to place this shortfall on no worse terms in the three months following the completion of the offer, at the directors’ discretion.
What's next
Kin anticipates that this will be an eventful quarter, with multiple assays and drill programs imminent.
“We are looking forward to a strong flow of news and announcements in the coming weeks,” the MD said.
About KIN
Kin Mining NL (ASX:KIN) is an Australian gold development and exploration company. Its activities are concentrated around the 100%-owned Cardinia Gold Project (CGP) in the North-Eastern Goldfields region of Western Australia, which has a 1.154-million-ounce gold resource.
Kin is pursuing a strategy to become a high-margin Australian gold producer by expanding its mineral inventory in the Leonora region.
- Susanna Nelson