Kin Mining formally entered into a senior secured credit facility for AUS$35 million ($27 million) with Canadian-based Sprott Private Resource Lending, a natural resource investor. Sprott has advanced an initial AUS$6.5 million ($5.092 million) under the facility.

The funding will be used for the construction of the Leonora Gold Project located in the North-Eastern goldfields region of Western Australia. The credit facility will allow Kin to carry out the necessary pre-production capital works, including their location and upgrade of the Lawlers mill to commence production at the LGP in the second half 2018.

“As one of the leading investors dedicated to the natural resource sector, Sprott is excited to partner with Kin to develop the LGP,” said Narinder Nagra, managing partner of Sprott. “Our partnership with Kin is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects.”

Managing Director Don Harper added, “We would like to thank Kin CFO Stephen Jones, Sprott and the legal teams in Australia and Canada who have worked tirelessly to bring about a successful outcome. With this credit facility being formalized, we have now delivered on all fronts this year.”

Kamara Group, a specialist investment and advisory firm, acted as Kin Mining’s adviser for the transaction.