30/05/2018 - 15:19

Kin, Nzuri raise $17m

30/05/2018 - 15:19

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Two junior explorers have announced capital raisings today, with aspiring gold miner KIN Mining tapping investors for $11.3 million while Nzuri Copper has raised $6 million.

Kin, Nzuri raise $17m
Kin recently suspended work at its Leonora gold project.

Two junior explorers have announced capital raisings today, with aspiring gold miner KIN Mining tapping investors for $11.3 million while Nzuri Copper has raised $6 million.

Kin, which recently suspended work at its Leonora gold project due to increases in pre-production capital costs, said that the raising was fully underwritten by lead manager Euroz Securities.

Institutional and sophisticated investors have subscribed for $2.4 million worth of shares at an issue price of 11 cents per share.

The company said the funds would be used to cover exploration costs at Leonora and potential repayment of the debt facility with Sprott.

“The board remains confident that the Leonora gold project holds significant value,” Kin said in a statement to the ASX.

“Kin intends to continue with its exploration and drilling programme while it progresses the additional activities required to enhance and optimise the value of the Leonora gold project when construction is resumed.”

Shares in Kin finished up 12.5 per cent at 14 cents each.

Meanwhile, Nzuri said it has raised $6 million via a share placement and converting loan.

Under the placement, which raised $3 million, the company issues 12 million shares at 25.5 cents each.

In conjunction with the placement, the company's largest shareholder, Tembo Capital has agreed to advance Nzuri a loan of $2.9 million, which will be converted to 11.5 million shares at the same price as the placement.

The company said it will also offer a share purchase plan on the same terms, with existing shareholders able to subscribe for up to $15,000 worth of new shares.

Mark Arnesen said the proceeds from the raising will be spent on work at the company’s Karlongwe copper-cobalt project.

“The proceeds will further strengthen the company’s balance sheet, ensuring that we are in a strong position to progress all key work-streams currently underway – including early-stage development activities for the Kalongwe stage one DMS Project, stage two expansion studies and, of course, our ongoing aggressive exploration push targeting both near-mine opportunities and the broader potential of the Fold and Thrust Belt joint venture,” he said.

Sahres in Nzuri finished off 13.3 per cent at 26 cents each.

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