King Island Scheelite (ASX: KIS) has now hit the funding target to proceed with the development of its wholly-owned Dolphin tungsten project on King Island, Tasmania following a $31 million equity raising.
The company today announced it has received firm commitments for a two-tranche placement to raise $25.5 million, plus an underwritten share purchase plan to raise a further $5.5 million, all subject to shareholder approval at the upcoming annual general meeting.
The first tranche of the placement raised $14.3 million via the issue of 102 million new shares at $0.14 each to new and existing sophisticated, professional, and institutional investors.
The second tranche of the placement and the additional share purchase plan respectively raised $11.2 million through 80 million shares, and $5.5 million via 39 million shares, at the same $0.14 per share price.
Funds now secured for full redevelopment
This $31 million total equity raising adds to the debt facilities and mobile mining fleet leasing facilities announced last month and a $10 million Tasmanian Government loan announced in February, bringing total financing for the project to its targeted $88 million.
King Island executive chairman Johann Jacobs described this latest demonstration of investor support as a “pivotal moment” in the company’s history.
“Our strategy has allowed us to move forward with our plan to redevelop King Island’s Dolphin tungsten mine, which hosts one of the few remaining high quality tungsten deposits in the western world.”
“We are focused on rapidly executing the company’s redevelopment strategy and look forward to delivering value for the company’s partners, staff, investors and the King Island community,” he added.
Funds will be specifically applied towards the purchase of key equipment, mobile mining equipment, processing plant development, civil and infrastructure construction, as well as working capital and equity raising costs.
The Dolphin tungsten project
The Dolphin tungsten project, located on the southeast coast of King Island in the Bass Strait, involves the redevelopment of a historical tungsten mine that closed in 1990.
The Dolphin deposit holds an estimated 2.9 million tonnes of probable reserves at 0.73% tungsten oxide, including an underground reserve of 1.5Mt at 1.24% tungsten oxide.
The Dolphin tungsten project is expected to produce its first concentrate in the March quarter of 2023.
At full production, the mine is forecast to generate 3,100t per annum of tungsten trioxide concentrate.