Special Report: Kin Mining and PNX Metals have unveiled plans for a merger that marks the entry of a new growth stock with exposure to uranium, precious and base metals.<\/p>\n
The combined company\u2019s portfolio of mineral resources will exceed 1.4 million ounces of gold, 16.2 million ounces of silver and 177 thousand tonnes of zinc.<\/p>\n
There\u2019s strong potential for more, thanks to significant near-term expansion potential, as well as multiple highly prospective base metal and uranium prospects across Western Australia and the Northern Territory.<\/p>\n
Highlights of the portfolio include PNX (ASX:PNX)<\/a>\u2019s exciting \u00a0Fountain Head gold and Hayes Creek zinc-gold-silver projects<\/a>\u00a0and its Thunderball uranium project<\/a>, all in the mineral-rich Pine Creek region of the NT.<\/p>\n Thunderball earned PNX No. 4 spot on MinerDeck<\/em>\u2019s global list of top uranium intercepts for Q1 2024, putting it a long way ahead of other Aussie explorers.<\/p>\n \u00a0<\/p>\n Quarterly uranium drilling highlights \u2014 Q1 pic.twitter.com\/e3tqlM2tGZ<\/a><\/p>\n \u2014 MinerDeck (@MinerDeck) April 2, 2024<\/a><\/p>\n\n \u00a0<\/p>\n The new entity will also have significant gold mineral resources in WA\u2019s Leonora region<\/a> close to existing processing plants.<\/p>\n The WA assets additionally have potential for high-grade gold discoveries and project expansion due to promising recent volcanic-hosted massive sulphide\u00a0 (VHMS) discoveries.<\/p>\n VHMS systems are some of the richest sources of metals such as copper, lead and zinc, as well as gold and silver.<\/p>\n \u00a0<\/p>\n With $75m in cash and shares following the sale of selected gold deposits within its Cardinia project in WA to\u00a0Genesis Minerals (ASX:GMD)<\/a>, Kin Mining (ASX:KIN)<\/a>\u00a0 said earlier this year it was eyeing a \u201crange of strategic opportunities\u201d<\/a>.<\/p>\n Now, under the deal enabled by a transformative Scheme of Arrangement, Kin Mining willacquire 100% of PNX\u2019s shares, creating an entity with a market cap of A$123 million, a strong balance sheet consisting of a very healthy A$89.6 million in cash and liquid investments and zero debt.<\/p>\n PNX shareholders will receive one fully paid ordinary share in KIN for every 13 fully paid ordinary PNX shares held on the Scheme record date. On a like-for-like basis, this represents a 6.2% premium using the 30-day volume-weighted average price (VWAP) of KIN shares and PNX shares respectively.<\/p>\n Once the deal is complete, Kin and PNX shareholders will collectively hold approximately 72% and 28% of the merged group respectively.<\/p>\n \u00a0<\/p>\n Mr Graham Ascough, Executive Chairman of PNX, commented: <\/strong>\u201cThe 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.<\/p>\n \u201cPNX shareholders will gain exposure to Kin\u2019s 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\u2019s 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.<\/p>\n \u201cThe combined entity\u2019s strong funding position and enhanced liquidity will allow us to accelerate exploration of PNX\u2019s exciting Thunderball Uranium Project and the development of our polymetallic resources at Hayes Creek.\u201d<\/p>\n Nicholas Anderson, Non-Executive Director of Kin, said: \u201cThe proposed merger with PNX Metals is consistent with Kin\u2019s recently articulated strategy of leveraging its strong balance sheet position and expertise to pursue value-adding M&A and corporate opportunities Australia-wide.<\/p>\n \u201cPNX has an extensive and high-quality tenement portfolio in the Pine Creek region of the Northern Territory, one of Australia\u2019s most prolific resource provinces. This portfolio includes a unique mix of development-level zinc, gold and silver assets and an exciting uranium deposit at Thunderball that has sat dormant for over a decade.<\/p>\n \u201cKin\u2019s strong balance sheet position gives us the capability to evaluate and fast-track the exploration of these projects, in parallel with our ongoing gold and base metal exploration at Cardinia in WA. This is a great example of sensible consolidation in the junior resource sector in what remains a challenging market for small companies. We are looking forward to working with the PNX team to complete this transaction.\u201d<\/p>\n \u00a0<\/p>\n\n \ufeff<\/span>\u00a0<\/p>\n This article was developed in collaboration with PNX Metals, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n \u00a0<\/em><\/p>\n This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n <\/span><\/p>\n The post Kin and PNX say yes to polymetallic marriage<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Kin\u2019s strategic spend<\/strong><\/h2>\n
Pooling strengths<\/strong><\/h2>\n