The Raleigh Finlayson-led Genesis Minerals will fork out some A$54.5 million - split between $15 million cash and 22 million shares worth around $38.5 million - to purchase nine mining leases and half-a-dozen miscellaneous leases centred on the Bruno-Lewis and Raeside deposits.
Genesis will add 610,000 ounces to its inventory of 15Moz as future satellite feed for the Gwalia and Mt Morgans processing hubs.
Finlayson said the 408,000oz of gold at Bruno-Lewis could support a restart of the idled 2.9Mtpa mill at Mt Morgans, 60km away, while the higher grade 202,000oz at 2gpt at Raeside was a good bolt-on asset for the 1.4Mtpa Gwalia mill that is just 10km away.
Kin's new board has been talking to Genesis for a while, and it's likely talks intensified during Genesis' recent push to mop up the last holdouts among Dacian Gold's shareholders, with the junior accepting around $21 million in Genesis shares for its 7.34% stake in Dacian.
Genesis will now work up reserves for the assets for inclusion into its five-year plan set for release early next year as it targets annual production above 300,000oz.
Once the latest deal is finalised, Kin will have $17 million in cash and some $69 million worth of Genesis scrip at current pricing, with the shares not escrowed.
Kin, which some years back started but abandoned construction of a mill of its own at Cardinia, will retain 932,000oz that wants to make attractive for tolling in one of the mills within haulage distance.
Besides Genesis, the logical partner, the next closest mill is owned by Red 5.
Kin's new executive chair, Rowan Johnston, said that with more than $86 million in cash and liquid assets, the company was well placed to continue to grow its resources.
It recently added 134,000 ounces grading 1.3 grams per tonne from drilling along the Eastern Corridor.
Resources in the east have an average grade of 1.42gpt, compared to the 1gpt grade in the west.
Kin has budgeted $5 million for drilling over the next six months, including deeper, potentially game-changing targets.
Johnston said success could lead to an even more aggressive push along emerging trends.
He said Kin also wanted to "make further meaningful contributions" to consolidation in the Leonora-Laverton region.
Kin will retain some 770sq.km of tenure along the Minerie greenstone belt after the sale concludes next quarter.
The region has been a hotbed of consolidation, with Genesis buying Dacian outright and St Barbra's Gwalia operations, Silver Lake Resources taking a stake in Red 5, and smaller deals such as the merger between Kingwest Resources and Brightstar Resources.
Genesis has 15Moz in resources and cash and bullion worth around $186 million to play with as the main driver of Leonora's consolidation.