Kin Mining NL (ASX:KIN) has received a vote of confidence from a leading resources investment enterprise following its $35 million financing which will effectively de-risk the Leonora Gold Project located in Western Australia.
A $35 million credit facility is being provided by Sprott Private Resource Lending, a division of Sprott Inc, an alternative asset manager and a global leader in precious metal and real asset investments.
The funding is as much an endorsement in Kin Mining’s management team led by Don Harper as it is in the project given that the asset was purchased in 2014 at the bottom of the gold cycle for $2.7 million.
Leonora forecast to be in production by second half 2018
Without a question mark now hanging over project funding there is a clear path to production and cash flow in 2018.
This development had an immediate positive share price impact with the company trading as high as $0.36 when the news broke around midday, up from the previous day’s close of $0.315.
There could be more catalysts to come though as the group plans to undertake a 100,000-metre exploration program in 2018.