Kin Mining (ASX: KIN) is raising $10 million to fund gold exploration at the Cardinia Mining Centre within its wholly-owned Leonora gold project in WA’s North-Eastern goldfields.
The raising, which includes a placement and entitlement issue, has received heavily oversubscribed firm commitments from Institutional and Sophisticated investors to raise $7 million.
Kin will issue 28 million fully paid ordinary shares at an issue price of $0.25 per Share, a 12.2 per cent discount to 5-day VWAP.
The company will also offer existing eligible shareholders the opportunity to participate in a 1 for 16 Non-Renounceable Entitlement Offer to all eligible shareholders to raise approximately A$3 million on the same terms as the Placement.
“The Company is now funded to implement an aggressive exploration program targeting both the Helens-Rangoon and Bruno-Lewis 3km mineralised systems at Cardinia,” Kin managing director Don Harper said.
Mr Harper said the company would now look to significantly increase and upgrade its resources and reserves ahead of gold production in 2018.
Petra Capital acted as lead manager to the Placement.
A Definitive Feasibility Study on the Leonora gold project forecast an average production rate of 55,000 ounces per annum. Mineral resources at Leonrora currently stand at 1.02Moz while ore reserve is 373,000oz.
Shares in Kin closed 9 per cent lower at 26c.