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- WA Kaolin (WAK) calls a trading halt as it gets ready to tap investors for a fresh funding boost
- The company’s flagship Wickepin kaolin project lies about 220 kilometres south-east of Perth in Western Australia and takes in a mineral resource of about 664.5 million tonnes, including an ore reserve estimate of 30.5 million tonnes of kaolinised granite
- WA Kaolin is currently producing kaolin products from Wickepin ore via a small-scale processing plant in Kwinana
- Last month the company flagged the need for additional capital to support its planned two-stage production ramp-up for Wickepin
- WAK shares last traded at 20 cents
WA Kaolin (WAK) has entered a trading halt as it gets ready to tap investors for a fresh funding boost.
The company’s flagship Wickepin kaolin project lies about 220 kilometres south-east of Perth in Western Australia and takes in a mineral resource of about 664.5 million tonnes, including an ore reserve estimate of 30.5 million tonnes of kaolinised granite.
WA Kaolin is currently producing kaolin products from Wickepin ore via a small-scale processing plant in Kwinana.
The company has a two-stage ramp-up strategy comprising the expansion of the project’s production rate to 200,000 tonnes per annum (tpa) by the end of 2022 and later to 400,000 tpa.
The trading halt on WA Kaolin shares will be lifted on Wednesday, February 9, unless the company announces the details of the planned capital raising before then.
WA Kaolin had just over $2 million in total available funds at the end of December after posting net cash outflows of $1.9 million — meaning at its December quarter rate of cash burn, the company had only three months of funding left in the bank.
The company said in January it would need further funds to support its plans to advance Wickepin to full production.
WAK shares last traded at 20 cents on February 4.
