Kin Mining NL (ASX:KIN) is raising approximately $20.4 million to underpin its next phase of growth at its 100%-owned Cardinia Gold Project (CGP) near Leonora in Western Australia.
The raising will come from a Placement of approximately 129.9 million shares at $0.075 to raise $9.7 million and a proposed non-renounceable entitlement offer (EO), also at $0.075, to raise an additional $10.7 million.
Notably, existing shareholders have contributed $4.7 million, highlighting their confidence in the project and the company’s strategy moving forward.
A further $5 million is being raised through new shareholders.
The Placement price represents a 16.7% discount to last traded price ($0.09/share) and a 17.7% discount to the 10-day VWAP ($0.091/share).
Use of funds
Money raised will go towards growth strategies at existing and new prospects within the Cardinia Gold Project and across the broader Leonora district.
The funds raised will:
- strengthen Kin’s balance sheet
- put it in a strong position to complete the next phase of growth at the CGP
- follow-up on the new discoveries and targets identified through Kin’s highly successful exploration campaigns over the past three years. This includes the developing discoveries along the Eastern Corridor (Cardinia Hill, East Lynne, Rangoon, Fiona and Helens East) as well as multiple new prospects which have been identified following significant advancements in the Company’s understanding of the geology and potential of the Cardinia Project.
Kin will also restart drilling this quarter, with infill and extension programs at Eastern Corridor targets.
A JORC Mineral Resource upgrade planned for release in September quarter.
Support greatly appreciated
Commenting on the capital raising, Kin Managing Director Andrew Munckton said: “We continue to appreciate the incredible support of our major shareholders and are also pleased to welcome a number of new institutional and sophisticated investors to our register. While the past three years have been busy, exciting and rewarding – with nearly 200,000 metres of drilling completed and an additional 494koz of Mineral Resources added – we know that the Company’s properties are located in an exciting and well sought-after mineral field and remain convinced that our tenure will yield further significant discoveries.
“The geological and technical advances made across the Company’s prospects, particularly at Cardinia, with the use of modern geophysics and detailed geological data collection, has transformed our understanding of the field. Armed with this knowledge and our expanding geochemical, geophysical and drilling database, 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. 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.”