Kin to sell Cardinia tenements for $53.5 million 

Kin Mining (ASX:KIN) has accepted a $53.5 million purchase offer from mid-tier gold producer Genesis Minerals (ASX:GMD) for a string of gold tenements in Western Australia. 

Kin, which has a $70.68 million market capitalisation, says the tenements comprise part of its wholly owned Cardinia Gold Project and include the Bruno, Lewis, Kyte, and Raeside deposits, as well as some associated buildings in miscellaneous licences. 

Together, the tenements host 610,000 JORC-compliant gold ounces (oz).

Under the agreement, Genesis will pay Kin $15 million in cash and will issue to Kin just shy of 22 million un-escrowed shares based on a 5-day volume weighted average price (VWAP) and valued at $38.5 million. 

The transaction value equates to about $88 per resource ounce. 

On completion of the sale, Kin will hold a total of 39.192 million Genesis shares valued at $69 million and cash of about $17 million for a total of $86 million in cash and liquid assets. 

Meanwhile, the company has completed an exploration review highlighting several promising and ‘potentially game-changing’ targets outside of its existing resource base that it plans to investigate over the next 6 months. 

Kin adds that a budget of $5 million has been set aside to test these targets, with expenditure over the next 6 months to depend on the program’s initial success, as well as the level of expenditure required to further drill out the existing resources. 

Kin notes the sale of the 610,000oz of its total resource of 1.5 million ounces (Moz) leaves the company with an ‘exceptionally strong’ balance sheet and platform for growth, with the ability to further drill out and increase confidence in the remaining 932,000oz. 

The company aims to make these ounces ‘attractive’ to operating processing plants within effective trucking distances.  

Kin reports the transaction includes access to Genesis and its operating subsidiaries to some of the company’s retained tenure to facilitate Genesis operations. 

Meanwhile, Kin is expected to retain access rights over the Kyte and Bruno-Lewis tenements being sold, enabling Kin to maintain its exploration over its retained tenements within the Cardinia project.

Kin Mining Executive Chair Rowan Johnston says the deal underpins the company’s upcoming exploration plans, the further definition of existing resources, and the evaluation of other growth options. 

“This is a great deal for Kin and one that resets the bar. This puts us in a unique position in the junior WA gold sector with the ability to unlock the value of our existing assets, aggressively target new discoveries, and participate in future consolidation.” 

“This puts us in a unique position in the junior WA gold sector…”

Kin Mining is a Western Australia-based gold explorer and developer with a key focus on its wholly owned Cardinia Project in the ‘highly prospective’ North-Eastern Goldfields region of Western Australia. 

As of 30 September 2023, the company had $2.367 million cash at hand, according to its latest quarterly report.

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Images: Kin Mining
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.