- King Island Scheelite (KIS) has secured $10 million in funding from the Tasmanian Government to support the redevelopment of its 100 per cent-owned Dolphin Tungsten Project in Tasmania
- The loan funding package provides $10 million over a 10-year term
- The funds will also aid the company’s commercial funding negotiations currently being conducted with financial institutions
- The company says the funding comes at the right time, with its recently published revised feasibility study boosting the expected project net present value by 65 per cent to $241 million
- KIS is in the grey, last trading at 13 cents
King Island Scheelite (KIS) has secured financial support through a $10 million loan from the Tasmanian Government to support the Dolphin Tungten Project.
The Dolphin Tungsten Project, located on King Island in Tasmania, is wholly owned by King Island Scheelite.
The loan runs for 10 years, provided as interest-only on a monthly basis, then switching to fixed principal plus interest payable monthly two years after the initial loan drawdown.
The loan also requires that all other capital raisings necessary to deliver the project are successful, and security and other terms, including conditions precedent, are in line with facilities of this nature.
King Island Scheelite Executive Chairman, Johann Jacobs said the funding comes at the right time. The company recently completed test work, which resulted in significant improvements in recoveries and grade, and saw the publication of a revised feasibility study, which boosted the expected project net present value by 65 per cent to $241 million. It also signed a significant multi‐year offtake agreement.
"Tungsten is a strategically significant metal and a key input to industries that are vital to national security. We note that several Western governments have recently identified a crisis in the supply chain for critical minerals, particularly tungsten, for which North America currently has no mines in production," Johann commented.
"We see a close alignment between the company's development objectives, the Tasmanian Government's interests in maintaining and growing both Tasmanian jobs and export revenue, and the strategic objectives of the Australian Government as implemented by Austrade and the Critical Mineral Facilitation Office."
KIS is in the grey, last trading at 13 cents at 12:44 pm AEDT.