Kin Mining has struck a $3 million funding deal with Geolord Resources to complete its acquisition of the Leonora gold project.
The tenement portfolio of more than 308 square kilometres is being purchased from Navigator Resources, with indicated and inferred gold resources of over 745,000 ounces of gold.
Geolord will subscribe to nearly 24 million shares at $0.15 per share in a placement that will consist of two tranches.
“This important cornerstone investment secures the Lenora gold project transaction and enables us to move forward with certainty to deliver our growth strategy, including our plans to move to production in the short-to-medium term,” managing director Trevor Dixon said.
“The proceeds of this placement, together with the proceeds of the current rights issue, will enable us to complete the acquisition and move ahead with exploration and feasibility studies while also testing some of our other high quality exploration targets in the region to create value for our shareholders.
“We are absolutely delighted to have secured the backing of a committed cornerstone investor, and we are now looking forward to completing the acquisition and getting on with the job of building a quality Australian gold mining company.”
Kin was up 7.1 per cent to 15 cents per share at the time of writing.