Kin Mining and PNX Metals, a gold and base metals explorer, are set to merge via a scheme of arrangement, which will see Kin acquire 100 per cent of the PNX shares.
Under the terms of the agreement, each PNX shareholder will receive one ordinary fully paid share in Kin for every 13 ordinary fully paid PNX shares held on the scheme record date.
If the scheme is approved and implemented, KIN and PNX will form a merged group where Kin shareholders will hold about 72 per cent of the entity, with PNX shareholders holding the balance.
Estimated at $123 million, Kin said the merged entity will create a diversified portfolio of quality mineral assets across Australia’s Tier 1 jurisdictions.
“The proposed merger with PNX is consistent with Kin’s recently articulated strategy of leveraging its strong balance sheet position and expertise to pursue value-adding M&A (mergers and acquisitions) and corporate opportunities Australia-wide,” Kin executive director Nicholas Anderson said.
“PNX has an extensive and high-quality tenement portfolio in the Pine Creek region of the Northern Territory, one of Australia’s 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.
“Kin’s 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.”
PNX’s independent directors have unanimously recommended for all PNX shareholders to vote in favour of the scheme in the absence of a superior proposal.
“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,” PNX executive chairman Graham Ascough said.
“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.”
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