THE BOURSE WHISPERER: Kin Mining (ASX: KIN) informed the market that Sydney-based investment firm, Kamara Group, has agreed to underwrite a non-renounceable rights issue to a maximum of $3.8 million.
The value equates to approximately 17.27 million shares at 22 cents per share.
“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 non-executive chairman Terry Grammer said in the company’s announcement to the Australian Securities Exchange.
“Kin has never been in a stronger position – we’re now fully-funded to complete the updated PFS, meet our obligations, and push forward with plans for near-term production.
“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.
“This is the green light we needed to deliver on our objectives and drive additional value for our shareholders and we would like to thank Kamara Group for its support.”
According to Kin, the rights issue will raise approximately $4.9 million with company allocating the funds to more aggressively pursue its growth strategy to develop the 100 per cent-owned Leonora gold project (LGP) as well as expanding its prospective exploration program and commence a Definitive Feasibility Study at the LGP.
Kin indicated it will also use the funds to pay out secured creditor, Waterton Global Value LLP, for the acquisition of the LGP.