Kin raises $3m for Leonora

Kin Mining has announced a $3 million capital raising to fund a pre-feasibility study on its recently acquired Leonora gold project.

The raising comprises a $1 million placement to sophisticated and professional investors, through the issue of up to 10 million shares at 10 cents each, and a $2 million share purchase plan to eligible stakeholders in the company, at the same price as the placement.

Along with a pre-feasibility study on Leonora, the funds raised will be used to conduct infill and extensional drilling at the project’s Mertondale deposit to define a target of 1 million-1.2 million ounces of gold.

“We are pleased with the strong interest received for the placement from a range of sophisticated and professional investors,” managing director Trevor Dixon said.

“The funding strategy will assist the company in progressing the highly prospective Leonora project into a large scale mining operation.”

Kin shares were 16.6 per cent lower to 10 cents each at 10:45am.