ripped off

This was posted by the FERRET today. Note the independent valuation of Leonora and compare it to the price that Pitcher Partners squeezed from KIN and ask yourselves; Are we being screwed with our pants on?

Ferret's Stock Watch: KIN MINING NL
06 Jun 2014 09:07:00
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MINER PINNING MUCH OF ITS FUTURE ON LEONORA GOLD PROJECT
Sydney - Friday - June 6: (RWE Aust Business News) - KIN MINING (KIN) has reported that its $2.7 million acquisition of the advanced Leonora Gold Project in WA has advanced to the next stage.

It involves an independent valuation of the project received and completion of the transformational deal on track for early July 2014.

The company has convened a shareholder meeting for July 4, 2014 to approve a change in scale of its activities as a result of the acquisition, which will fast-track its planned transition to gold producer.

Kin, which listed on the ASX in October last year as a junior gold explorer, has reached agreement to acquire all of the issued capital of Navigator Mining Pty Ltd from the Administrator of Navigator Resources, Mr Bryan Hughes of Pitcher Partners, for $2.7 million, with a $200,000 deposit already paid.

This represents an acquisition cost of approximately $3.60 per resource ounce.

The company has received an independent valuation of the Leonora Gold Project from independent consultants Optiro Pty Ltd.

Optiro's opinion of the fair market value of the Mineral Resources and exploration potential of the Leonora Project is that it lies within the range of $3.8 million to $14.5 million, with a preferred value of $8.5 million.

This equates to a valuation of $11.30 per resource ounce.

Discussions are well advanced with potential financiers and strategic cornerstone investors.

The company is currently finalising the structure for the planned $5M capital raising to complete the Leonora Project acquisition and provide working capital.

Completion of the transaction, which is now targeted for early July, is conditional on Kin obtaining shareholder approval, successfully raising $5 million to fund the acquisition and provide working capital and no material adverse event occurring.

All other conditions precedent have been satisfied.

The Leonora Project,which is located 35km north-east of the mining centre of Leonora in WA's North-eastern Goldfields and comprises the Mertondale, Cardinia, Raeside and Gambier Lass project areas, complementing KIN's current asset holding in the area.

As previously announced, Kin has initiated technical studies aimed at upgrading the Project's existing Indicated and Inferred Resource of 12.29Mt grading 1.9g/t gold for 745,000oz (over 70% of which is classified in the higher confidence Indicated category) to JORC 2012 compliant status.

This updated resource estimate will provide the basis of the Bankable Feasibility Study, which is scheduled to begin in early 2015. A decision to mine is targeted by October 2015.

Kin managing director Trevor Dixon said discussions with potential financiers and cornerstone investors have been progressing well, with the Company aiming to announce the final structure of the capital raising in the near future.

"The independent valuation from Optiro supports the conclusions of our due diligence and confirms that the Leonora Project is a valuable asset with an established gold inventory to be acquired at an extremely attractive price, Dixon said.

"We are looking forward to completing the acquisition and executing the next key steps of our strategy to become a significant WA gold producer.

Background on the Leonora Gold Project

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Kin's proposed acquisition of the Leonora Project from the Administrator of Navigator Resources, which produced 7,233oz at an average grade of 2.33g/t Au from trial mining of two pits at Leonora in 2010 before turning its attention to the Bronzewing Project.

Total historical production from the Project area amounts to nearly 2Mt at an exceptional average grade of 4.92g/t gold for over 316,000oz.

Substantial planning and development work has already been completed at Leonora, with pit optimisation studies completed for each of the key deposits.

Metallurgical test work has also returned strong results, including recoveries of 95% plus.

A CIP gold plant designed to treat 500kt/pa from the project has been the subject of a previous feasibility study to determine potential capital and operating costs.

At the same time, Kin haD initiated technical studies aimed at upgrading the Project's existing Indicated and Inferred Resource of 12.29Mt grading 1.9g/t gold for 745,000oz (over 70% of which is classified in the higher confidence Indicated category) to JORC 2012 compliant status.

A Pre-Feasibility Study completed by Navigator in 2009 for 97% of the total Mineral Resource demonstrated an economically viable project with considerable upside.

These studies also demonstrated that 282,000oz are contained outside the main resource areas, highlighting the substantial exploration potential within the broader 308 km2 tenement package.

As well as upgrading the resource estimate to JORC 2012 compliance, Kin plans to launch a significant drilling program to expand and grow the inventory in these areas.

The project area is situated within the Eastern Goldfields Province, the easternmost subdivision of the Archaean Yilgarn Block.

SHARE PRICE MOVEMENTS

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Shares of Kin Mining yesterday held at 18.5c.Rolling high for the year is 35c and low 15c. The company has 23.2 million shares on issue with a market cap of $4.2 million. ` The Eastern Goldfields Province comprises volcanic and sedimentary rocks (greenstones) that were deposited around 2,700 Ma ago, multiply folded, metamorphosed to low or medium grade, extensively intruded by granitoids at about 2,680 to 2,660 Ma, and subjected to major faulting along northerly to north-north westerly trends.

The greenstones can be further subdivided into terranes generally separated by major faults or granitoids. For Leonora, the terranes, from west to east are the Malcolm, Murrin, Laverton and Cosmo Newbery greenstones.

The Malcolm greenstones occupy a small area southwest of the Yilgangi Fault (Keith-Kilkenny Lineament) and mainly consist of basalt, gabbro-dolerite, mafic schist and sediments.

The Raeside project area is located within the Malcolm greenstones.

The Murrin greenstones are located between the Yilgangi Fault (Keith-Kilkenny Lineament) and the Celia Lineament, and host the Cardinia and Mertondale project areas.

The area is typified by basalt, sandstone, siltstone, felsic volcanic rocks, dolerite, peridotite and volcaniclastic rocks that have been Independent Valuation on the Leonora Gold Project deformed by large scale D1 and D2 folds and D3 faults and intruded by several small to large, ovoid to elongate granitoid plutons.

These studies also demonstrated that 282,000oz are contained outside the main resource areas, highlighting the substantial exploration potential within the broader 308 km2 tenement package.

As well as upgrading the resource estimate to JORC 2012 compliance, Kin plans to launch a significant drilling program to expand and grow the inventory in these areas.

Kin MD Trevor Dixon said: The technical data accumulated by Navigator showed there was strong potentialto develop high-grade starter pits at Leonora with the aim of maximising upfront cash flow.

This would in turn help secure project funding and enable Kin to rapidly pay off the capital cost while growing the resource and reserves as part of a longlife operation.

BACKGROUND

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Kin Mining NL is a recently successfully listed Australian based resource company (ASX,KIN) which has six mineral exploration project areas in the Leonora District of Western Australia.

All the projects are regarded as having good potential for hosting economic deposits of gold, nickel, and other base metals.

Kin has assembled a team of highly qualified individuals experienced in the exploration and development of mineral properties with a view to realising the growth potential of the project areas selected to increase shareholder value.

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04/06/2014 Kin Advances WA Gold Strategy

03/06/2014 Notice of General Meeting/Proxy Form

15/05/2014 Change of Director's Interest Notice

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