Kin Mining (ASX: KIN) has revealed its major shareholder Delphi AG has provided a short-term bond facility for $3 million to enable exploration to continue while awaiting the completion of a $19.2 million entitlements issue.
The funding will mean the explorer can continue drilling high-grade gold targets along the Eastern Corridor of its 1.4-million-ounce Cardinia gold project in Western Australia. Kin describes the area as a series of high-grade lodes along an extensive interconnected structural system with significant potential at depth.
Kin managing director Andrew Munckton said this bridging facility will enable the company to process assays from diamond drilling and undertake further reverse circulation (RC) drilling to evaluate emerging high-grade positions along the Eastern Corridor. This includes a focus on the shallower discoveries of Cardinia Hill, East Lynne, Rangoon, Fiona and Helens East.
“We continue to appreciate the incredible support of our major shareholder, both in making a firm commitment to the rights issue announced on January 18, 2023 and in providing this short-term funding facility,” he added, referencing Delphi’s commitment to subscribe for $6.7 million in the entitlement offer.
The short-term facility has an interest rate of 8% and is repayable within three months. It is intended to be repaid from the proceeds of the current entitlement issue.
Entitlements issue due for completion next month
Last week Kin announced a non-renounceable entitlement offer to all eligible shareholders to raise up to $19.2 million at $0.055 per share, with an opportunity to subscribe for one new share for every three shares held.
At the time of announcement, the offer represented a 12.8% discount to the 10-day volume weight average price of Kin shares.
The company has confirmed Delphi intends to subscribe for all of its entitlements in the offer, totalling $6.7 million.
Kin hopes the capital raising will put it in a strong position to complete the next phase of growth at its Cardinia project and follow-up on new discoveries and targets identified through its recent exploration campaigns.
The company said the funds would also assist in its preparation to be involved in the “ongoing consolidation” in the Leonora region of WA.
Encouraging drilling results from Helens East Fault
Kin also announced further encouraging RC drilling results from targeted deeper drilling completed along the Helens East Fault, confirming the presence of higher-grade, quartz-sulphide lode-style mineralisation below and along strike from the shallow 35,000-ounce resource at Fiona.
Assay highlights include: 4m at 5.69 grams per tonne gold from 101m including 1m at 18.16g/t; 3m at 6.06g/t from 127m; 5m at 3.23g/t from 126m; and 1m at 7.13g/t from 100m.
These latest results reinforce previous high-grade intersections along Helens East Fault including 7m at 24.7g/t gold from 107m and 2m at 24g/t from 204m.
The newly identified quartz-sulphide vein-style mineralisation remains open in all directions along strike and down-dip with the potential for the current 1km strike length to extend up to 2km with further drilling below a defined gold-in-soil anomaly, Kin reported.
“We now know that the Eastern Corridor hosts a number of significant structures including the Helens-Rangoon Fault, the Helens East Fault and the Cardinia Hill Fault containing several yet-to-be drilled targets where narrow, high-grade quartz-sulphide lodes persist to significant depths as part of a large mineralised system,” Mr Munckton said.
“Confirming the presence and continuity of high-grade mineralised zones opens up an important new avenue for our exploration team to target new, high-grade discoveries within the Eastern Corridor, complementing the shallower, bulk style resources which we have already defined,” he added.
