PERTH (miningweekly.com) – ASX-listed King Island Scheelite will raise A$5.6-million in a share placement to pay off term debt.
The company on Tuesday reported that it would place 28-million shares, at a price of 20c each, under its existing placement capacity, with the placement supported by cornerstone investor DACHS Capital, which subscribed for 20-million shares.
The funds would go towards paying off a A$4.7-million term debt and accrued interest, which the company had previously incurred in acquiring fixed property adjacent to its Dolphin mine site, and working capital to advance the Dolphin tungsten project, in Tasmania.
An updated feasibility study has estimated a startup capital cost of A$72.1-million to develop the Dolphin project, with life-of-mine capital estimated at A$129.2-million, placing capital cost for the operation at A$40/t of tungsten produced. The project is expected to produce at a rate of 20 t/y of tungsten over an eight-year mine life.