Kin offers marry-up to PNX

Kin offers marry-up to PNX

February 15, 2024 Off By Jack Baker

Kin Mining and PNX Metals have entered into early discussions after Kin made an unsolicited offer toward a potential merger of the two small-cap companies and their assets across Western Australia and the Northern Territory.

PNX confirmed it had received an unsolicited, non-binding, indicative, and incomplete proposal from Kin, and it had now started discussions with the Leonora-focused explorer.

Kin was already the subject of acquisition talks given its large landholdings and collection of ounces in a region undergoing an emerging consolidation battle between the Red 5/Silver Lake merger and Raleigh Finlayson’s Genesis Minerals.

Kin had already sold two gold projects to Genesis for $53.5 million in cash and shares, but it remains to be seen – or perhaps even properly discussed – what a combined portfolio of assets might look like.

The offer-maker’s corporate update earlier in the day said it was in early-stage discussions with several exploration entities with assets in WA that are considered prospective for gold and other metals, to complement its existing portfolio.

Kin recently copped a please-explain from the ASX around a high volume of shares being traded, with the company response highlighting interest in its cashed-up position and early discussions that had not progressed to any kind of indicative terms.

It looked like something was coming, but Kin’s PNX offer came as something of a surprise. While the pair share a common interest in gold, PNX’s Northern Territory ounces remain a long way away from Kin’s.

PNX did made news a week ago with previously unreported high-grade uranium intersections, receiving a notable share price bump and interest in its collection of James Bond-themed deposits at its Hayes Creek uranium tenure in the Northern Territory, a commodity which does not yet appear in the Kin portfolio.

As is the usual case, the market responded more favourably to the receiver of the offer, and PNX’s share price ascended roughly 20 per cent on the news while Kin recorded around a 10 per cent drop coming out of its trading halt.

Read more on M&A: BDO’s Adam Hayes on what to watch for on the takeover timeline

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