- Tungsten explorer King Island Scheelite (KIS) has entered a trading halt while it plans a capital raise with proposed investors
- The tungsten explorer is focused on re-developing the historical Dolphin Tungsten Mine which is located in Tasmania
- KIS received a $10 million loan from the Tasmanian Government and recently said it’s in discussions to finance another $62.7 million to deliver the project
- So it seems the upcoming capital raise will be used to get the Dolphin Tungsten Mine off the ground, but the market will know for sure by March 16
- Company shares last traded at 22.5 cents on March 11
King Island Scheelite (KIS) has entered a trading halt while it plans a capital raise with proposed investors.
The ASX-listed tungsten explorer will remain in the trading halt until Tuesday, March 16 at the latest.
King Island Scheelite is focused on re-developing its wholly-owned Dolphin Tungsten Mine which is located on King Island, Tasmania.
At the start of February, the company secured $10 million in loan funding from the Tasmanian Government as a sign of support for the historical project.
The mine was discovered in 1911 and operated on and off but was impacted by multiple declines in the tungsten price.
Recently, there’s been an increased demand for the critical mineral as Western governments have noticed a crisis in the supply chain. This places the Dolphin Tungsten Mine in a significant position to meet the rising demand.
In its interim financial report for the half-year ending December 31, 2020, KIS inked its plans to seek extra funding on top of the government loan.
The company said it’s in discussions with interested parties to finance another $62.7 million in required capital to deliver its plans for the Dolphin project.
So it seems the upcoming capital raise will be used to get the Dolphin Tungsten Mine off the ground, but the market will know for sure by early next week.
Company shares last traded at 22.5 cents on March 11.