NEWLY listed explorer Kin Mining will acquire the 745,000oz Leonora gold project from failed gold miner Navigator Resources for $2.7 million.
Kin managing director Trevor Dixon said the acquisition would complement the company’s six mineral exploration project areas in the Leonora district of WA, which are close to the gold project.
“[The] potential for further discoveries in the region through current and future exploration activities could create a significant mining operation for the future,” he said.
The Leonora gold project, which includes the Mertondale, Cardinia, Raeside and Gambier Lass project areas, is in the northeastern Goldfields, about 35km northeast of Leonora and 700km northeast of Perth.
“Kin intends to immediately assess the project areas and proceed to improve the status of the JORC resources, with the intention of establishing an economical mining operation,” Mr Dixon said.
Completion of the transaction is scheduled for 30 June.
Navigator appointed an administrator last year after the company was unable to repay more than $40 million in debt associated with its flagship Bronzewing gold mine.
The sale of Bronzewing is being negotiated with Metaliko Resources.