Under the agreement, Kin will acquire a Navigator subsidiary for $A2.7 million in cash, including a $200,000 deposit on completion of due diligence.

Conditions of the deal include the completion of due diligence within 21 days, Kin raising at least $5 million and obtaining shareholder approval, and the signing of a formal share purchase agreement.

Kin's current projects are in the Leonora area and it said the acquisition complemented its existing ground.

The Leonora gold project comprises the Mertondale, Cardinia, Raeside and Gambier Lass deposits, which have combined resources of 745,000 ounces at 1.9 grams per tonne gold, using a 0.7gpt cut-off.

Most recent production at the project was from the Mertondale pit until 1993.

Before its collapse a year ago, Navigator had been hoping to restart Leonora, with capital costs estimated at around $30 million for a 40,000oz per annum operation over about nine years.

Kin said upon completion of the acquisition, it would immediately start work to improve the status of the resources with a view to restart the operation.

"Importantly, Kin's existing projects are within close proximity of the Leonora gold project and the potential for further discoveries in the region through current and future exploration activities could create a significant mining operation for the future," Kin said.

The acquisition is set to be completed by the end of June.

Pitcher Partners, the administrators of Navigator, are still trying to sell the Bronzewing operation after a sale to Metaliko Resources collapsed last week.

Navigator collapsed last year due to its inability to secure funding amid underperformance at Bronzewing.

Shares in Kin, which listed on the ASX in October, rose 6% to 26.5c.