Ann: Kin Secures Short-Term Bond For $3m, page-7

I am happy with the DCN move. The bridging loan will cost about 60k. Worth it not to have to pause drilling and potentially lose access to drilling rigs. The drilling company will take other work if Kin can't keep continuous workflow, and then Kin will be left competing for drilling time in a few weeks.

GMD have been getting a tiny trickle of acceptances for months in their DCN takeover offer. They keep extending it even though it has plainly stalled, perhaps because they and anyone else who can read a quarterly report could see that buying DCN left Kin short of cash. Delphi support is a signal to GMD that running out the clock won't put pressure on Kin. GMD now has the planned merger with SBM on the horizon, so they are under time pressure. That merger would look a lot sweeter if they actually owned DCN rather than controlled it, (and rather unimpressively controlled it at that. The GMD installed board have failed to sort out feed for the mill in good time.) At some point GMD will have to let the takeover offer expire. Then, after 4 months, they are going to have to pay a lot for the remaining DCN shares, unless SBM buys them (also for a lot). Meanwhile DCN own the Mt. Morgans mill, not GMD, and the mill needs ore which Kin has ready to go.

The other reason to keep the drilling going from my point of view is that after years of systematically exploring Cardinia we are approaching the proof why the project has for years been picked as an elephant country project, which is to say getting down to the primary ore. When there is kilometres of ground to drill knowing the structural controls before spending a squillion on deep holes is essential. This map of where the high grade (5 g/tonne plus) holes are, from the quarterly report, is stunning: look at how closely the high grade hits map onto the faults, and consider how little deep drilling, or any drilling, has explored the parallel faults. People used to complain on this forum all the time that AM was too phlegmatic .. .and here he is telling us he thinks they are sitting on a multi-million ounce deposit and they think they have cracked the code of how to find the high grade ore.

(BTW someone posted on here that high grade = 100 gram meters, which is nonsense. Gram meters are not a measure of grade. You could get 100 gram meters from 200 m of 0.5 gram per tonne ore, which is very low grade. Kin's definition ... 5 g/tonne or greater, is the better one.)