PERTH (miningweekly.com) – Gold developer Kin Mining will raise A$20.4-million to underpin the next phase of growth at its Cardinia gold project, in Western Australia.

The raising comprises a placement of approximately 129.9-million shares at $0.075 to raise an initial A$9.7-million and a proposed non-renounceable entitlement offer, also at $0.075, to raise an additional A$10.7-million.

“We continue to appreciate the incredible support of our major shareholders and are also pleased to welcome a number of new institutional and sophisticated investors to our register. While the past three years have been busy, exciting and rewarding, with nearly 200 000 m of drilling completed and an additional 494 000 oz of mineral resources added, 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,” MD Andrew Munckton said.

The funds raised will strengthen the company’s balance sheet, putting it in a strong position to complete the next phase of growth at the Cardinia project and follow-up on new discoveries and targets identified through Kin’s exploration campaigns over the past three years.

This includes the developing discoveries along the Eastern Corridor as well as multiple new prospects which have been identified following advancements in the company’s understanding of the geology and potential of the Cardinia project.

“The geological and technical advances made across the company’s prospects, particularly at Cardinia, with the use of modern geophysics and detailed geological data collection, have transformed our understanding of the field. Armed with this knowledge and our expanding geochemical, geophysical and drilling database, we believe Kin can continue to identify new, shallow deposits that are the surface expression of 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 other opportunities within the broader Leonora district,” said Munckton.

“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 a mineral resource update scheduled for September.”