Junior mining companies Kin Mining and PNX Metals on Monday announced their merger, creating a group with a combined mineral resource of 1.4-million ounces of gold, 16.2-million ounces of silver and 177 000 t of zinc.
PNX shareholders will receive one fully paid ordinary share in KIN for every 13 fully paid ordinary PNX shares. On a like-for-like basis, this represents a 6.2% premium using the 30-day volume weighted average price of both companies’ shares respectively.
Upon implementation of the scheme, Kin and PNX shareholders will hold about 72% and 28% of the merged group, respectively.
“The merger of Kin and PNX is set to create one of the most exciting growth stocks in the junior resource sector on the ASX. The combined entity will have unparalleled balance sheet strength, a dynamic management team comprising like-minded individuals from each company, and a fantastic exploration and growth pipeline in WA and the NT,” said executive chairperson Graham Ascough.
Existing Kin directors Giuseppe Graziano and Nicholas Anderson will be joined on the board of the merged group by current PNX director, Ascough. Dual directors Rowan Johnston and Hansjoerg Plaggemars will continue on the merged board.
Johnston will remain as executive chairman while the search for an appropriate CEO takes place to lead the expanded group once the scheme is approved.
The independent board committee of PNX, comprising Ascough, James Fox and Hans-jörg Schmidt, unanimously recommends the scheme to PNX shareholders.
PNX shareholders will gain exposure to Kin’s high-quality gold projects in the Leonora region, where it has a proven track record of value creation through its recent transactions with Genesis Minerals. Kin’s retained gold inventory in this district offers outstanding optionality and growth potential, particularly in a rising gold market, along with the upside of its recent VHMS base metal discovery and other recent exploration breakthroughs.
“The combined entity’s strong funding position and enhanced liquidity will allow us to accelerate exploration of PNX’s exciting Thunderball uranium project and the development of our gold, silver and polymetallic resources at Fountain Head and Hayes Creek,” said Ascough.
