A strategic update from Kin Mining NL (ASX:KIN) details the company’s strengthened balance sheet in light of its sale of selected gold assets, the key strategic objectives that Kin is seeking to pursue given its improved cash position and an update on exploration activities at the Cardinia Project in the north‐eastern Goldfields region of Western Australia.
Balance sheet strengthened
As announced last month, Kin completed the sale of selected gold deposits within the Cardinia Gold Project in Western Australia to Genesis Minerals (ASX:GMD) Ltd. This transaction has left the company well-funded to progress its exploration and growth strategy and to review selected strategic opportunities.
Kin now has $47.3 million in cash and a further $38.3 million in Genesis Minerals shares (21,280,465 GMD shares at $1.80/share) for a total of around $85.6 million in cash and liquid assets.
This is significant, as the company’s current market capitalisation is $70.6 million, at the current $0.06 share price. This leaves a market valuation on the company’s retained 932,000 ounces of JORC-compliant gold resources at the Cardinia project at negative $16/resource ounce.
Kin advises that it intends to continue to de‐risk and add to these ounces through well‐targeted exploration.
Strategic objectives
The company’s substantial cash and liquid assets position will enable it to pursue a number of core strategic objectives, which include but are not limited to:
- Increasing the certainty for the company’s existing 932,000-ounce resource at Cardinia - moving to a higher confidence resource category;
- Discovering additional ounces to grow the existing mineral resource estimate at Cardinia;
- Continuing to evaluate pathways to monetize both current and new resources;
- Confirming and developing the recent VMS discovery at the Albus prospect and across the broader land package; and
- Reviewing opportunities to acquire new projects, both locally and nationally.
Kin also advises that early‐stage discussions are continuing with several exploration entities with interests in projects in Western Australia that are considered prospective for gold and other metals. The discussions are in regard to a strategic investment by Kin or acquiring interests in assets complementary to Kin’s existing portfolio.
Cardinia exploration update
Kin re‐commenced drilling on its Cardinia East tenure in early February 2024, with a diamond drilling program to extend and evaluate the recently reported Albus intercept. This is part of a new systematic and multi‐pronged exploration program targeting the base metals potential at Cardinia.
The company says that while drilling operations have been significantly impacted by the substantial rain that has fallen in recent weeks, drilling has resumed and will continue for the next few weeks.
The recent discovery was made as part of an ongoing strategic review of the broader potential of the Cardinia Project for new discoveries and other styles of mineralisation, including base metals.
Kin had expected assay results and other geochemical surveys towards the end of Q1, 2024, but says the rain delays may push these into the next quarter.
To present at Resources Rising Stars
Kin Mining executive chair Rowan Johnston is due to present at the upcoming Resources Rising Stars Gather Round Investor Conference in Adelaide on Thursday, April 4, 2024.
The conference is being held at the National Wine Centre in Adelaide at 9.00am (local) and is free to attend. To register, visit the conference website at www.resourcesrisingstars.com.au.