THE BOURSE WHISPERER: Kin Mining (ASX: KIN) has shaken off a takeover offer to launch a $13 million raising to progress the next phase of exploration at the company’s 100 per cent-owned Cardinia Gold Project (CGP) near Leonora in Western Australia.
Kin Minin revealed it had been subjected to a clandestine non-binding indicative offer (NBIO) from St Barbara (ASX: SBM).
The suitor company had offered to acquire 100 per cent of Kin shares via a Scheme of Arrangement at an implied price of 16 cents per share that was subsequently rejected by Kin Board, which believed the NBIO would not have been approved by the requisite 75 per cent voting majority of Kin’s shareholders.
The NBIO was highly confidential, secret squirrel stuff, being subject to a number of conditions, including no leak or public disclosure of the NBIO, due diligence, the unanimous recommendation of the Kin Board, the execution of a scheme implementation agreement between SBM and Kin containing exclusivity mechanisms, and no further issuance of equity securities by Kin.
“The Kin Board welcomed the continued interest from St Barbara noting that the proposed NBIO price suggests that the current Kin share price is significantly undervalued,” Kin Mining managing director Andrew Munckton said in the company’s ASX announcement.
“The Kin Board remains focussed on progressing company activities to maximise the value of the company for all shareholders.”
With the St Barbara dust settled, Kin Mining announced its intention to launch an Entitlement Offer, which will be available to all eligible shareholders that will be priced based on recent share trading.
The company indicated the funds raised will provide sufficient working capital to complete the next phase of systematic exploration work at the CGP and to follow up on the new discoveries and targets identified as part of its recent drilling campaigns completed during 2020 and 2021.
These include the emerging discoveries at Mt Flora and Iron King, as well as multiple new prospects which have been identified following t improvements in the company’s understanding of the geology and potential of the CGP such as the Eagle and Crow prospects.
“We’ve had considerable success converting our improving geological understanding into exploration results, and then converting those results into additional Mineral Resources,” Munckton said
“At Cardinia Hill, we have successfully added 106,000 ounces of new Mineral Resources, while the Bruno-Lewis Mineral Resource has been expanded by 20 per cent to 374,000 ounces.
“Our systematic approach to exploration has paid off in spades and given us a much better idea of where and how to target the next phase of drilling – which will be designed both to define new resources and to identify additional discoveries with the potential to deliver a step-change in the value of the project.
“The additional funding will allow us to continue to assess the recent discoveries at Cardinia Hill and follow up on new prospects like Mt Flora, Eagle and Crow – in short to maintain the very strong exploration momentum we have built up over the past two years.
“Other targets across the land package have been identified by recent soil geochemistry and modern geophysical surveys over largely untested areas within the highly mineralised Cardinia area.
“We expect this work to generate new follow-up programs of work stretching into 2022.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE