Kin Mining NL (ASX:KIN) has launched a non-renounceable entitlement offer to raise up to $19.2 million which will underpin the next phase of growth at the 100%-owned Cardinia Gold Project (CGP) near Leonora in Western Australia.
Specifically, the funds will enable Kin to continue its growth strategies through exploration and preparation to be involved in regional corporate consolidation.
Kick-start from Delphi Group
The capital raising initiative is already off to a strong start with largest shareholder and prominent resources sector investor Delphi Group AG providing a firm commitment to participate for its entitlements to $6.7 million.
This entitlement offer, which is available to all eligible shareholders, includes the opportunity to subscribe for one new share for every three shares held at an offer price of $0.055 a share.
The offer price represents a 12.7% discount to last traded price ($0.0630/share) and a 12.8% discount to the 10-day VWAP ($0.0631/share).
“Appreciate strong support”
Kin managing director Andrew Munckton said: “We appreciate the strong support of our shareholders to continue to build the Cardinia Project inventory and support our regional consolidation aspirations.
"The past couple of years have been busy, exciting and rewarding, with nearly 500,000 ounces of mineral resources added at Cardinia.
"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, adding to the value proposition of the company.
“The geological and technical advances made across the company’s prospects, particularly at the Eastern Corridor area of Cardinia, has transformed our understanding of the field and allowed a renewed focus on higher grade targets within the project areas."
Issue details
The company expects the well-priced pro-rata rights issue to eligible shareholders on its share register at 5.00pm WST on January 23, 2023, to be strongly supported by existing shareholders.
In line with these expectations, KIN has received a commitment from Delphi Group to subscribe for 34.75% of the offer with a value of $6.7 million.
The company will retain the right, at the discretion of directors, to place the shortfall on no worse terms in the three months following the completion of the entitlement offer.
Use of funds
Funds raised will strengthen KIN’s balance sheet, putting it in a strong position to complete the next phase of growth at the CGP and follow up on the new discoveries and targets identified through Kin’s successful exploration campaigns over the past three years and recently.
These will also further assist in KIN’s preparation to be involved in the ongoing consolidation in the Leonora region.
The company's successful exploration campaigns include the recently drilled deeper holes at Cardinia’s Eastern Corridor where it is eagerly awaiting assay results to finalise follow-up drilling and the developing of shallower discoveries along the Eastern Corridor (Cardinia Hill, East Lynne, Rangoon, Fiona and Helens East).
Strong flow of news expected
"While still early days, the Eastern Corridor area is revealing a strong structural control of the higher grade +5.0 g/t ore in quartz-sulphide lodes up to 200 metres below the near-surface deposits that form the majority of the 1.4-million-ounce mineral resource estimate at the CGP,” Munckton said.
"Armed with this knowledge and our expanding geochemical, geophysical and drilling database, we believe Kin can continue to identify new, 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 the consolidation and potential production 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 recently completed drilling at the Helens East target.”