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Kin Mining negotiates flexibility for credit facility with Sprott

The company intends to repay the outstanding balance before 31 December 2018.
pot plant with hedge trimmed to look like upwards arrow
Positively, Sprott has expressed intention to stay involved with the project

Kin Mining NL (ASX:KIN) has reached an agreement to modify the US$27 senior secured credit facility with Sprott Private Resource Lending.

The modifications to the facility include repayment in tranches of the US$5 million outstanding and a removal of all facility covenants from the date of completion of repayment.

Kin has made the first tranche repayment of US$2 million and has sufficient cash available to repay the US$3 million balance.

READ: Kin Mining intersects strong gold grades at Leonora project, progresses production bore

By repaying the facility in tranches Kin retains the ability to utilise its cash in the most cost-effective manner as results are received from exploration.

This includes additional drilling and metallurgical work programs at Helens, Bruno Lewis and the water exploration and production bore drilling programs at Bummer Creek and Cardinia Creek.

Kin originally drew down US$5 million of the facility prior to suspending construction of the Cardinia processing plant at the Leonora Gold Project (LGP) in May of this year.

Construction was suspended in order to complete additional work programs necessary for the re-commencement of the project development.

Notably, Sprott has expressed a desire to remain involved in the LGP and has agreed to leave the facility structure in place with no additional costs until Kin has completed its additional work programs.

Sprott is a globally renowned resources-focused investment firm.

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