PERTH (miningweekly.com) – ASX-listed Kin Mining will raise A$3.1-million through a share placement and underwritten pro-rata non-renounceable entitlement offer to fund drilling at its Cardinia gold project, in Western Australia.
The company will raise some A$850 000 through a share placement, priced at 3.5c each, to two of its existing shareholders, while a further A$2.2-million will be raised through a one-for-eight non-renounceable entitlement offer, also priced at 3.5c a share.
Kin on Friday said that it had received firm commitments from its three largest shareholders, which collectively held a 42% interest in the company, that they would subscribe for their share of the entitlement offer.
Funds raised will be used to complete the next phase of work at Cardinia, including regional geophysical surveying and resource extension and discovery drilling.
The funding will also allow Kin to continue with its ongoing review of regional consolidation opportunities and project development assessment.
“We remain confident of the strategic value of the Cardinia gold project and continue to pursue pathways designed to monetize this value in the current strong gold price environment. The additional funding will allow us to apply modern geophysics over largely untested areas within the highly mineralised Cardinia and Mertodale areas, which are concealed by shallow cover,” said Kin MD Andrew Munckton.