Following the release of positive drilling results, Kin Mining plans to raise $10 million in equity to fund gold exploration at the Cardinia deposit, part of its Leonora gold project in the Eastern Goldfields, Western Australia.
The $10 million is to be split between a $7 million institutional sophisticated placement and a $3 million shareholder entitlement offer, in time for a production start of the second half of 2018. The $7 million and $3 million figures represents roughly 28 million and 12 million shares in the company at a price of 25 cents per share.
“The company is now funded to implement an aggressive exploration program targeting both the Helens-Rangoon and Bruno-Lewis three kilometre mineralised systems at Cardinia,” said Kin managing director Don Harper.
“We look forward to significantly increasing and upgrading our resources and reserves ahead of gold production in 2018.”
Kin Mining was the recipient of the 2017 Diggers and Dealers Best Emerging Company award in Kalgoorlie in August and recently entered into a funding agreement for $US27 million (35.3 million) with Sprott Private Resource Lending.