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Kin Mining, Kalium Lakes, American Rare Earths in equity raises

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Listed gold explorer Kin Mining, potash explorer Kalium Lakes and American Rare Earths were fronting investors with cash calls on Tuesday morning.

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Rare earth concentrate ready for processing.  Trevor Collens

Leonara gold play Kin Mining was after $20.4 million, split as a $9.7 million share placement and a $10.7 million one-for-seven non-renounceable entitlement offer.

The offer was priced at 7.5¢, a 16.7 per cent discount to the last close and 13.4 per cent lower than the 20-day volume-weighted average price.

Kin’s major shareholder DELPHI unternehmensberatung Aktiengesellschaft (Delphi) had signed a firm commitment for $4.7 million of the placement and would take up its share of the entitlement offer, according to the term sheet sent to potential investors.

The proceeds would be used for resource definition, infill and exploration drilling at its Cardinia project near WA’s Leonara, which is the epicentre of current gold M&A activity.

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Kin’s cash call follows non-deal meetings with fund managers last week. It knocked back a non-binding bid from St Barbara last year, and has investors wondering if it would miss out on the latest round of gold consolidation.

Argonaut Securities and Canaccord Genuity were the joint lead managers and called for bids by 5p Tuesday.

Rare earths raises continue

Elsewhere, American Rare Earths was asking investors for $11 million to fund exploration at its Wyoming projects, in the third rare earths equity capital markets deal in August.

The offer was priced at 29c a share, an 18.3 per cent discount to the last close.

It comes two days after it posted assay results for Bluegrass area Halleck Creek project in Wyoming, which it said found significant new rare earth mineralisation.

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Potential investors were told ARR was the only ASX-listed exposure to US rare earths projects, and the company would use the proceeds for expansion drilling, feasibility studies and to expand the claim area.

Canaccord Genuity was the lead manager and bookrunner, and bids were due 4pm Tuesday.

It’s the third locally listed rare earths explorer to tap the equity capital markets this month and joins Arafura Resources and Dreadnought Resources. Arafura raised $32 million via Bell Potter and Canaccord Genuity and Dreadnought raised $10 million via Canaccord.

Kalium Lakes, DevEx Resources, Mallee Resources

Debt-laden sulphate of potash explorer Kalium Lakes had made up its mind on pricing and size, after nearly a week of investor soundings.

Its broker Morgans was out offering shares at 4¢ each for $22 million total. Bids were due 6pm Tuesday.

DevEx Resources has Bell Potter rounding up investors for a $10 million share placement, priced at 34¢ a share, a 17.1 per cent discount to the last close. Its directors would also seek shareholder approval to invest $2.3 million via a second tranche.

Bids were due 5pm, Sydney time.

Lastly, Mallee Resources was raising $20 million to $70 million to bring its Averbury nickel project back into production, as reported by Street Talk in July.

Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Kanika Sood is a journalist based in Sydney who writes for the Street Talk column. Email Kanika at kanika.sood@afr.com.au

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