Kin Mining NL said Oct. 9 that it intends to raise A$10.4 million through a pro rata 2-for-5 nonrenounceable rights issue at 8 Australian cents per share to advance the Leonora gold project in Western Australia and retire a US$3 million facility from Sprott.

Three major shareholders of the ASX-listed gold explorer, representing approximately 21% of its issued share capital, committed to fully participate in the entitlement offer.

Work programs at the Leonora project will include optimization and accelerated exploration of new targets to focus on increasing resources, with a revised feasibility study targeted for late 2019.

Kin Mining placed the Leonora operations on care and maintenance in early June after suspending construction of the Cardinia plant in May to conduct additional work including new cost estimates.

An updated estimate in mid-September increased resources at the Helens deposit, part of the Cardinia mining center at Leonora.