Kin Mining has turned down St Barbara’s offer to acquire the company after a lack of shareholder support was anticipated for the proposal.
St Barbara’s non-binding indicative proposal (NBIO) comprises $0.16 per Kin share in St Barbara shares.
The company acquired a 19.8 per cent stake in Kin Mining in July 2021.
Kin expected that other major shareholders who hold more than 25 per cent of its shares on issue would not have accepted the offer with St Barbara since withdrawing the offer.
“The Kin board welcomed the continued interest from St Barbara noting that the proposed NBIO price suggests that the current Kin share price is significantly undervalued,” Kin managing director Andrew Munckton said.
“The Kin board remains focussed on progressing company activities to maximise the value of the company for all shareholders.”
Kin has also announced an entitlement offer to raise $13 million as part of its next phase of exploration at the Cardinia gold project in Western Australia.
The company’s market capitalisation is $83.96 million.
Munckton said the company hopes to springboard of its recent exploration success.
“We’ve had considerable success converting our improving geological understanding into exploration results, and then converting those results into additional mineral resources,” he said.
“At Cardinia Hill, we have successfully added 106,000 ounces of new mineral resources, while the Bruno-Lewis mineral resource has been expanded by 20 per cent to 374,000 ounces.
“Our systematic approach to exploration has paid off in spades and given us a much better idea of where and how to target the next phase of drilling – which will be designed both to define new resources and to identify additional discoveries with the potential to deliver a step-change in the value of the project.
“The additional funding will allow us to continue to assess the recent discoveries at Cardinia Hill and follow up on new prospects like Mt Flora, Eagle and Crow – in short to maintain the very strong exploration momentum we have built up over the past two years.”
St Barbara has not released a formal announcement for the rejected bid at the time of writing.