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King Island Scheelite (ASX:KIS) to raise fresh capital

The Market Online Deal Room
ASX:KIS
01 October 2021 12:20 (AEST)

The Dolphin Tungsten Project. Source: King Island Scheelite

King Island Scheelite (KIS) has entered a trading halt ahead of a ‘material’ capital raise.

The company hasn’t given any details on how much it plans to raise nor how exactly it will spend the funds.

In saying that, King Island has recently made clear that its focus is on redeveloping the Dolphin tungsten project in Tasmania.

This project hosts high-quality tungsten and has a projected mine life of 14 years with substantial upside potential.

Positively, the Dolphin project secured a $33 million boost earlier this month from four major KIS shareholders and an external party. King Island said the debt funding will allow it to redevelop the project.

This funding is in addition to a $10 million loan from the Tasmanian Government which was granted in February.

At this stage, project activities are expected to begin this month including construction which will take place through to the end of 2022.

King Island Scheelite expects to come out of the trading halt on Monday, October 4.

Company shares last traded at 17 cents on September 30.

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