Join our daily newsletter At The Bell to receive exclusive market insights
- King Island Scheelite (KIS) has received firm commitments to undertake a $31 million equity raising, comprising a two-tranche placement and underwritten Share Purchase Plan (SPP)
- King Island will use the money from the equity raising to redevelop its Dolphin Tungsten Project on King Island, Tasmania
- Specifically, the money will go towards the purchase of key equipment, mobile mining equipment and processing plant development
- Shares in King Island are down 5.88 per cent on the market and are trading at 16 cents at 12:04 pm AEDT
King Island Scheelite (KIS) has received firm commitments to undertake a $31 million equity raising.
This equity raising consisted of a two-phase placement and an underwritten share purchase plan (SPP), with the SPP set to close on November 5.
King Island entered a trading halt on October 1 but did not disclose how much it intended to raise or what it would use the funds for once received.
Phase one of the placement saw roughly 102 million new shares issued to sophisticated, professional and institutional investors at 14 cents to raise $14.3 million.
This price represented a 17.5 per cent discount to King Island’s last trading price of 17 cents on October 1 and a 19.4 per cent discount to the 15-day volume-weighted average price.
Subject to shareholder approval, shareholders who provided debt facilities have committed to subscribe for $11.2 million.
The remaining $5.5 million will be raised through the share purchase plan.
Eligible shareholders are able to subscribe between $1000 to $30,000 worth of shares without incurring and brokerage or transaction costs.
Shares under the SPP will be priced the same as the placement of 14 cents.
King Island will use the money from the equity raising to redevelop its Dolphin Tungsten Project on King Island, Tasmania.
Specifically, the money will go towards the purchase of key equipment, mobile mining equipment, processing plant development and civil and infrastructure construction.
Executive Chairman Johann Jacobs commented on the equity raising.
“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,” Mr Jacobs said.
“Having secured commitments for the funding, we can now continue to execute on our vision to develop world class tungsten mining operations in Tasmania.”
Shares in King Island were down 2.94 per cent on the market and were trading at 16.5 cents at 13:48 pm AEDT.
