With approximately $75 million in cash and liquid assets, a cashed-up Kin Mining NL (ASX:KIN) is seeking to invest in projects considered prospective for gold and other metals and, as such, has made a play for PNX Metals Ltd (ASX:PNX).
The company has issued a non-binding and indicative offer to PNX Metals in relation to a potential merger but the proposal in the offer has not been agreed and the parties are continuing discussions.
PNX confirms proposal
PNX confirms that it has received an unsolicited, non-binding, indicative and incomplete proposal in relation to a potential merger from KIN.
It says it has subsequently engaged in preliminary discussions with KIN regarding the indicative proposal.
"The discussions are at an early stage and remain incomplete, and there is no certainty that the indicative proposal or any other transaction will eventuate."
To advise PNX on this matter, Taylor Collison has been appointed as financial adviser and Piper Alderman as legal advisers.
PNX is an ASX-listed minerals exploration company that holds significant mineral resources at its 100%-owned Hayes Creek zinc-gold-silver and Fountain Head gold projects, both in the Pine Creek region of the Northern Territory.
Kin well-funded
After completing the sales of selected gold deposits within its Cardinia Gold Project in Western Australia to Genesis Minerals (ASX:ASX:GMD) Ltd, Kin is well-funded.
It has approximately $75 million in cash and liquid assets to pursue a range of strategic opportunities, assuming a GMD share price of $1.52, and a strong market capitalisation of approximately $87 million, assuming a KIN share price of $0.074, to pursue a range of strategic opportunities.
Early-stage discussions
The company is in early-stage discussions with several exploration entities with interests in projects in Western Australia.
These discussions are regarding the potential for either a strategic investment by KIN or the acquisition of interests in assets complementary to KIN’s existing portfolio.
Kin said that none of these discussions had progressed to the stage of indicative terms being proposed whether on a non-binding basis or otherwise.
The company advises that any transaction undertaken will be subject to the satisfactory completion of due diligence investigations and the negotiation and execution of binding agreements.
In the event that any binding agreements are reached, the transaction would remain subject to conditions precedent including the receipt of all necessary regulatory and shareholder approvals or consents.