Kin makes bid for Navigator project

Jarrod Lucas

Terry Grammer's Kin Mining has picked the bones of collapsed gold miner Navigator Resources, making a $2.7 million bid for its Leonora gold project.

The deal, subject to shareholder approval and a $5 million capital raising, will secure 745,000 ounces of gold resources near Kin's existing projects.

A binding term sheet has been signed with Navigator's administrators Pitcher Partners, who took control of the company last year after its Bronzewing gold mine closed, owing an estimated $40 million to creditors.

The Kin deal follows Metaliko Resources' struggle to complete its Bronzewing acquisition, with the Perth-based explorer last week scrapping its $6.9 million equity raising to fund the planned $4.8 million purchase.

Michael Ruane's Metaliko says it is still in negotiations with Pitcher Partners but there is no guarantee for a deal.

Kin, which listed on the Australian Securities Exchange last October, is required to pay a deposit of $200,000 after completing financial, technical and legal due diligence.

The transaction should be completed by June 30.

Managing director Trevor Dixon said Kin planned to immediately assess the project areas, including the Mertondale area which comprises 395,000oz.

The acquisition follows a "spectacular" gold hit last month of 2m at 34.23g/t - or better than one ounce per tonne - at Kin's Murrin Murrin project, 45km east of Leonora.

"Kin's existing projects are within close proximity of the Leonora gold project and the potential for further discoveries in the region through current and future exploration activities could create a significant mining operation for the future," Mr Dixon said.

The company is chaired by Mr Grammer, a well-known geologist who founded nickel miner Western Areas.

Kin shares were up 6 per cent mid-session at 26.5 cents.