Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Kin Mining was hoping to raise some A$11.3-million through a share placement and non-renounceable entitlement offer to fund exploration work at the Leonora gold project, in Western Australia.
Kin will place some 21.9-million shares, or around 9.9% of the company’s existing shares, on issue, in a single tranche, to raise an initial A$2.4-million. A pro-rata one-for-three non-renounceable entitlement offer, which will consist of 81.2-million shares, will raise a further A$8.9-million.
The offer will be priced at 11c a share, representing an 11.3% discount to Kin’s five-day volume weighted average share price.
Kin told shareholders that the funds would be used to undertake exploration programmes to expand and extend the mineral resource at the Leonora gold project, and to repay and retire the current Sprott facility of A$6.7-million.
Kin recently took the decision to suspend plant construction at the Leonora gold project, to allow the company to undertake further work after a preliminary review confirmed cost blow-outs at the processing plant.