Kin Mining NL (ASX:KIN) has received a further show of confidence from a German-based substantial shareholder which has increased its holding to 8.52% from 7.19% by participating in an entitlement offer.
Delphi Unternehmensberatung Aktiengesellschaft (AG), of Heidelberg, purchased almost 9.01 million shares in the offer at 8 cents per share and now holds more than 31.818 million shares.
It is the second time this year that the company, whose major shareholder is prominent German executive Wilhelm Zours, has participated in a Kin capital raising exercise.
Previously Delphi purchased more than 22.7 million shares at 11 cents each for total consideration of $2.5 million.
Kin’s most recent 2-for-5 non-renounceable rights issue closed this month with acceptances received for $3.909 million worth of shares.
The shortfall of 81.03 million shares was partially underwritten to the value of $5.3 million or 66.28 million shares.
Upon completion of the rights issue, underwriting and placement for shortfall, the total funds raised will be $10.4 million before costs.
Funds will be used to accelerate resource growth at the Leonora Gold Project (LGP), refinement of the development pathway and full repayment of the Sprott Facility.
The junior gold developer remains focused on advancing the LGP to a lower-risk, higher-quality development decision in the second half of 2019.
Investing in resources
As well as being Delphi’s major shareholder, Zours is also chairman of investment company Deutsche Balaton AG, a role he has held since June 25, 2004.
The prominent German executive is active on the supervisory board of Beta Systems Software AG, Sparta AG and Strawtec Group AG and is a board member at VV Beteiligungen AG.
Zours, through Delphi, Deutsche Balaton and VV Beteiligungen, has this year been active in a number of Australian resources investments.