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Kin Mining raising up to $15 million to progress next phase of exploration and resource growth at Cardinia Gold Project

Last updated: 20:35 09 Feb 2021 EST, First published: 20:08 09 Feb 2021 EST

Kin Mining NL -
Funds raised under the SPP will be used for ongoing exploration activities and for general working capital

Kin Mining NL (ASX:KIN) is undertaking a capital raising of around $15 million to progress the next phase of exploration and resource growth at its Cardinia Gold Project near Leonora in Western Australia.

The raising comprises a placement of around 92.3 million shares at 13 cents to raise $12 million and a proposed share purchase plan (SPP), also at 13 cents to raise an additional $3 million.

This placement includes $8.2 million contributed by cornerstone shareholders and $3.8 million from new investors, demonstrating the strong continuing support of Kin’s strategy by key backers.

Drilling resumes this week

Managing director Andrew Munckton said: “We are extremely grateful for the incredible support shown by our major shareholders, and we also take the opportunity to welcome a number of new investors to our register.

“While we made enormous progress last year in the 60,000 metres or so of drilling completed, we believe we still have a long way to go to demonstrate the full potential of the Cardinia Gold Project and increase our resource base to the next level.

“The geological and technical advances made in recent months, particularly the recent gravity survey, has transformed our understanding of the field.

“Armed with this knowledge and our expanding geochemical and drilling database, we are moving ahead with confidence as drilling resumes this week.

“We plan to drill some 30,000 metres in the first half of this year across a range of established and new prospects, building on the 60,000 metres completed last year.

“All of which means that investors can look forward to news-flow and action aplenty as we work hard to deliver results and upside from the Cardinia Gold Project for our shareholders.”

Funds to strengthen balance sheet

Kin intends to launch the SPP to provide the opportunity for all shareholders to participate in this important capital raising in a meaningful way and on the same terms as the placement.

Funds raised will strengthen the company’s balance sheet, putting it in a strong position to complete the next phase of systematic exploration work at the CGP and to follow up on the exciting new discoveries and targets identified as part of the highly successful exploration campaigns completed during 2019 and 2020.

Details of placement

New shares issued from the placement will rank equally with existing fully paid ordinary shares on issue and the company will apply for official quotation of the new shares.

The issue of these shares is expected to be settled on Wednesday, February 17, and begin trading on Thursday, February 18.

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