PERTH (miningweekly.com) – ASX-listed Kin Mining will raise up to A$19.2-million through a non-renounceable entitlement offer to fund the company’s growth strategies in Leonora.

The entitlement offer will be done on the basis of one new share for every three shares held, at an offer price of 5.5c a share, representing a discount of 12.7% to Kin’s last trading price and a 12.8% discount to the company’s ten-day volume weighted average share price.

Funds raises will underpin the next phase of growth at the Cardinia gold project, in Western Australia, and will be used to follow up new discoveries and targets identified through exploration campaigns over the past three years.

“We appreciate the strong support of our shareholders to continue to build the Cardinia project inventory and support our regional consolidation aspirations. The past couple of years have been busy, exciting and rewarding, with nearly 500 000 oz of mineral resources added at Cardinia,” said Kin MD Andrew Munckton.

“We know that the company’s properties are located in an exciting and well sought-after mineral field, and remain convinced that our tenure will yield further significant discoveries, adding to the value proposition of the company.

“The geological and technical advances made across the company’s prospects, particularly at the Eastern Corridor area of Cardinia, have transformed our understanding of the field and allowed a renewed focus on higher grade targets within the project areas. While still early days, the Eastern Corridor area is revealing a strong structural control of the higher grade 5.0 g/t ore in quartz-sulphide lodes up to 200 m below the near surface deposits that form the majority of the 1.4-million-ounce mineral resource estimate at Cardinia,” said Munckton.

“Armed with this knowledge and our expanding geochemical, geophysical and drilling database, we believe Kin can continue to identify new, larger and higher-grade mineralisation in the underlying fresh rock. We have plans to drill significant new targets throughout the next 12 months across a range of established and new prospects, as well as assess the consolidation and potential production opportunities within the broader Leonora district.

“The quality of these exploration targets and the strength of support for this capital raise means we can expect strong news flow over the coming months, commencing with recently completed drilling at the Helens East target.”