- King Island Scheelite (KIS) has tapped professional investors for a tidy $5.6 million in a bid to clear debts and advance its Dolphin Project in Tasmania
- All up, 28 million shares were issued under the placement, with the majority taken up by a Swiss investment company and the remainder issued to professional Australian investors
- The company plans to use the cash to clear debts from a property it purchased near its wholly-owned Dolphin Tungsten Project in Tasmania and fuel working capital
- Shares are set to be issued at 20 cents each pursuant to section 708A of the Corporations Act and ASX listing rule 7.1
- King Island Scheelite shares are up a healthy 13.3 per cent on the market, trading at 25.5 cents
King Island Scheelite (KIS) has tapped professional investors for a tidy $5.6 million in a bid to clear debts and advance its Dolphin Project in Tasmania.
Out of the 28 million company shares issued under the placement, 20 million of which were taken up by Swiss investment company D.A.CH.S. Capital, with the remaining balance issued to professional investors in Australia.
The company detailed how it plans to spend the proceeds, advising it wishes to clear the $4.7 million in term debt plus interest it incurred after acquiring property adjacent to the Dolphin tungsten mine.
The Dolphin Tungsten Project, located on King Island in Tasmania, is wholly owned by King Island Scheelite.
It’s also expected to fuel working capital for the project, with the remaining approximate $500,000 to be converted to equity following approval from the Foreign Investment Review Board.
King Island affirms the new balance sheet position puts it in a better position to negotiate the debt component required to fund the recommencement of operations at Dolphin. Following these transactions, KIS says it will be debt-free.
Shares are set to be issued at 20 cents each pursuant to section 708A of the Corporations Act and ASX listing rule 7.1.
MAC Equity Partners acted as lead manager on the placement.
King Island Scheelite shares are up a healthy 13.3 per cent on the market, trading at 25.5 cents at 11:43 pm AEDT.