Kin Mining NL (ASX:KIN) has completed the sale of selected gold deposits within its Cardinia Gold Project in Western Australia to Genesis Minerals (ASX:ASX:GMD) Ltd. The sale leaves Kin well-funded with $80 million in cash and liquid assets to pursue “a range of strategic opportunities”.
“We are very pleased to announce the completion of this transformative transaction, which crystallises significant value for our shareholders from the company’s efforts over the years to build a substantial resource inventory at the Cardinia Gold Project," said Kin executive chairman Rowan Johnston.
"Kin is now in an enviable position in the junior resources space, with a very strong balance sheet and the ability to move forward with a range of exciting strategic opportunities.
“In the near term, we are excited to be drilling and testing the newly discovered VHMS horizons at Cardinia and then moving on with commencing drilling for deeper and higher grade gold targets. Kin will continue to adopt a disciplined and focused approach as it seeks to add value for its shareholders across its exploration portfolio and other opportunities.”
The strengthened balance sheet leaves Kin well-placed to pursue a range of strategic options, including:
- continuing to add value to the retained 932,000 ounces at the Cardinia Gold Project;
- targeting deeper, higher-grade gold discoveries on existing tenure;
- following-up the recent VHMS base metal discovery at Cardinia;
- growing a quality team; and
- evaluating and pursuing value-accretive corporate opportunities.
The transaction saw Kin receive $15 million in cash and 21,917,532 fully paid Genesis shares. Already holding 16,115,805 shares in Genesis, the issue of the additional shares lifts Kin’s holding to 38,033,337 shares, for a 3.4% shareholding in Genesis.