PERTH (miningweekly.com) – Junior gold miner Kin Mining is hoping to raise A$3.8-million through a nonrenounceable rights issue.
The company will place a maximum of 17.2-million shares, at 22c each, to raise the funds. Sydney-based investment firm Kamara Group has agreed to underwrite the rights issue.
“We had interest from several parties to underwrite the offer, causing us to extend the closing date slightly while we selected the best terms for our shareholders,” Kin Mining nonexecutive chairperson Terry Grammar said on Wednesday.
“We’re on the cusp of a significant growth phase and believe this show of confidence in our board and management team is likely to encourage shareholders to take up their rights, further strengthening our future as an emerging West Australian gold company.”
Proceeds from the rights issue will be used to aggressively pursue the company’s growth strategy to develop the Leonora gold project, expand the exploration programme, start definitive feasibility work at Leonora, and establish sufficient working capital.
The company will also pay out secured creditor Waterton Global Value for the acquisition of the Leonora project.
Kin poured its first gold at Leonora earlier this month as part of a trial mining programme at the Lewis deposit.