- King Island Scheelite (KIS) secures $33 million in debt funding to advance the redevelopment of its Dolphin Tungsten Project on King Island in Tasmania
- A group of lenders comprising KIS major shareholders and an external financier has agreed to fund the work, subject to conditions
- The proceeds top up a $10 million loan from the Tasmanian Government, with a further leasing facility for equipment under negotiation
- KIS says it is on track to commence works in the fourth quarter of the year
- Shares are up 14.7 per cent to 19.5 cents each at 12:38 pm AEST
King Island Scheelite (KIS) has secured $33 million of debt funding to advance the redevelopment of its Dolphin Tungsten Project on King Island, Tasmania.
A group of lenders comprising KIS major shareholders and an external financier has agreed to fund the work, subject to several financing conditions.
The debt facilities will be repayable between three and six years after drawdown at annual interest rates of between 6.5 per cent or $19 million, and 8.25 per cent or $14 million.
The proceeds top up a $10 million loan granted by the Tasmanian Government in February — certain aspects of which are being renegotiated to accommodate the extra debt facilities.
Further, KIS intends to fund its mobile mining fleet through a leasing arrangement and is reportedly negotiating a further $10 million facility with a specialist company.
King Island Scheelite Executive Chairman Johann Jacobs said the company was encouraged by the support from its lending group and thanked existing and incoming investors for their confidence.
“This important step brings us much closer to achieving financial close on the Dolphin Project, which hosts one of the few high-quality tungsten deposits remaining in the western world,” he said.
“The company remains confident in targeting financial close for the project in the next two months.”
The latest debt facilities remain subject to shareholder approval, which KIS will seek at the company’s annual general meeting in October.
Shares were up 14.7 per cent to 19.5 cents each at 12:38 pm AEST.