14/07/2016 - 10:57

Kin rejects merger offer

14/07/2016 - 10:57

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Aspiring gold miner KIN Mining says it has rejected a proposal from Victoria-based MHM Metals to merge the two companies.

Kin rejects merger offer
Kin Mining's Leonora gold project.

Aspiring gold miner KIN Mining says it has rejected a proposal from Victoria-based MHM Metals to merge the two companies.

Perth-based Kin said its board and advisers carefully reviewed the proposal, and formed the view that the offer significantly undervalued the company.

“The company has been strongly advancing the Leonora gold project and undertaking resource definition drilling in preparation for the feasibility study as well as the new appointment of Don Harper as CEO to take the project into production as soon as practicable,” Kin said in a statement.

“Consequently, the board unanimously decided to reject the proposal.

“The company remains committed to maximising the value for shareholders and is considering all available options to achieve this outcome.”

MHM bought up a 10 per cent stake in Kin earlier this week, citing the Leonora project as an attractive potential gold development project, before entering a trading halt.

Its shares were due to be reinstated this morning, however after Kin publicly rejected the offer it announced a further suspension.

Kin shares were unchanged at 30 cents each at 11am.

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