Kin Mining – Placement and Rights Issue to Raise $3.1M
Friday, October 18th, 2019
- Placement to raise approximately $850k priced at $0.035 per share completed to two existing major shareholders
- Underwritten pro-rata 1-for-8 non-renounceable Entitlement Offer priced at $0.035 per share to raise gross proceeds of $2.2M
- Commitments received from Kin’s three largest shareholders (which together hold 42%) to subscribe for their full entitlements
- Major shareholder Delphi UA to underwrite the balance of the Entitlement Offer
- Offer price represents an 8% discount to the 5 day VWAP price of $0.038 and 10% discount to the 10 day VWAP price of $0.039
- Funds provide sufficient working capital for the next phase of geophysics and drilling at the Cardinia Gold Project and continued assessment of regional consolidation opportunities
Kin Mining NL (ASX: KIN) advises of the completion of a share placement to two existing major shareholders which has successfully raised approximately $850k (the Placement). The Placement will now be followed by an underwritten, non-renounceable entitlement offer on the same terms to all shareholders (the Entitlement Offer).
The Placement of 24.205 million shares was completed at a price of $0.035 per share to two of Kin’s largest shareholders, Delphi UA and Harmanis Holdings.
Under the Entitlement Offer, all eligible shareholders will be given the opportunity to subscribe for 1 new share for every 8 shares held at an offer price of $0.035 a share.
The Company has received confirmation from its three largest shareholders that they intend to subscribe for their full entitlements in the Entitlement Offer. Collectively these shareholders hold approximately 42% of Kin’s shares currently on issue. The remaining shares in the Entitlement Offer have been underwritten fully by Delphi UA.
The funding will provide Kin with sufficient working capital to complete the next phase of work at the Cardinia Gold Project (CGP) which is expected to include regional geophysical surveying to generate targets for the next round of resource extension and new discovery drilling. Furthermore, it will enable Kin to continue its ongoing review of regional consolidation opportunities and project development assessment.
Commenting on the capital raising, Kin Managing Director Andrew Munckton said:
“We remain confident of the strategic value of the Cardinia Gold Project and continue to pursue pathways designed to monetise this value in the current strong gold price environment. The additional funding will allow us to apply modern geophysics over largely untested areas within the highly mineralised Cardinia and Mertondale areas which are concealed by shallow cover. We expect this work to generate new targets for our next drilling program in early 2020. The Company also continues to assess opportunities to grow the CGP Mineral Resources via accretive regional consolidations to potentially accelerate the project development.”