THE BOURSE WHISPERER: Kin Mining (ASX: KIN) is poised to acquire the Leonora gold project having executed a binding term sheet with the administrator of Navigator Resources (ASX: NAV).
The Leonora gold project comes as a ready-made package for Kin consisting the Mertondale, Cardinia, Raeside, and Gamber Loss project areas, which host a combined JORC-compliant (2004) mineral resources of 745,000 ounces of gold.
Kin Mining tenements (blue) proposed acquisition tenements (red). Source: Company announcement
Once the acquisition has been finalised, Kin said it will weigh up the project areas with a view to improving the current status of the JORC resources with the intention of establishing the project as an economic mining operation.
The Leonora project is situated within close proximity of Kin’s existing projects, which the company considers provides potential for further discoveries, eventually leading to the creation of a substantial future mining operation.
Under the terms of the agreement, Kin will acquire all the issued securities in Navigator Mining from Navigator Resources for consideration of $2.7 million.
Kin is required to complete financial, technical and legal due diligence during the 21 day period from the date of the execution of the term sheet, after which a deposit of $200,000 is to be paid.
The company will also complete a fund raising for a minimum amount of $5 million.
The deal is scheduled to be completed on 30 June 2014.
Email: info@ kinmining.com.au