Gold aspirant Kin Mining has secured $35 million in financial backing from Canada’s Sprott Private Resources Lending to advance development of its Leonora gold project in Western Australia.
Kin, which has executed a binding term sheet with Sprott, will use the funding package to support the pre-production and construction costs of its 100 per cent owned project, which is expected to be in production during the second half of 2018.
The credit facility provides Kin with the funding it requires to complete pre-production capital works, including relocation and upgrade of the Lawlers mill to launch production.
Kin’s definitive feasibility study for the Leonora project forecasted pre-production capital costs of $30 million with an 18 per cent contingency of $5.4 million.
Don Harper, Kin managing director, said the credit facility would allow the company to immediately commence the development of the Leonora project and set it on a clear pathway to gold production and cash flow.
“Sprott is known to be well-versed in determining the viability of resource projects and making astute investment decisions. We look forward to collaborating with Sprott to become Western Australia’s next gold producer,” Harper said.
Kin described the debt package with Sprott as competitive and favourable for the gold company.
Sprott managing director Narinder Nagra said the investment firm was excited to partner with Kin to develop the Leonora project.
“Our partnership with Kin is consistent with our strategy of providing innovative and flexible capital to maximise the value of exceptional projects,” Nagra said.