PERTH (miningweekly.com) – ASX-listed Kin Mining is hoping to raise a further A$10.4-million for its Leonora gold project, in Western Australia.

Kin on Tuesday announced a two-for-five pro-rata non-renounceable entitlement offer priced at 8c a share. The offer price represented an 11% discount to the last trading price of Kin shares, and a 17% discount to the ten-day volume-weighted average share price.

“Since the suspension of project development activities earlier this year, Kin has set about restoring the credibility of the Leonora gold project in a methodical and progressive fashion. This raising, and the planned use of the expected funds represents the next step in this process,” said Kin MD Andrew Munckton.

The proceeds from the entitlement offer will be used on the optimisation of the Leonora project, accelerated exploration of new targets with the potential to deliver further significant resource growth at the project, as well as the repayment of the outstanding $3-million Sprott facility.

The entitlement offer follows an A$11.3-million capital raise that was undertaken in May, with funds from that raising also going towards exploration at Leonora.

Kin in June placed the Cardinia processing plant on care and maintenance, after a preliminary review confirmed cost blow-outs at the processing plant.

“A range of technical workstreams are in progress to optimise the scope and refine the elements of the Leonora gold project. Alongside this work, Kin continues to target both significant further resource growth and a greater understanding of the gold endowment potential that the Leonora gold project offers,” said Munckton.

“These activities are collectively targeted to ensure that the Leonora gold project is rapidly moved towards a revised feasibility study in late 2019, that can define a robust and highly attractive project development case.”