KIS raises some equity for Dolphin

KING Island Scheelite is raising A$5 million for its Dolphin project on King Island, making it the second tungsten developer this week on the funding trail.
KIS raises some equity for Dolphin KIS raises some equity for Dolphin KIS raises some equity for Dolphin KIS raises some equity for Dolphin KIS raises some equity for Dolphin

Drilling seven years ago at Dolphin, King Island

KIS will use the funding (from issuing new shares priced at 20c each), to pay off term debt of $4.7 million, plus accrued interest, which the company had previously incurred in acquiring fixed property adjacent to the Dolphin mine site and as working capital. 

KIS started the current quarter with $1.76 million. 

The company also suggested the strengthened balance sheet put it in a "much better position" to negotiate the debt funding needed to develop Dolphin. 

Feasibility work last year put the initial capex for Dolphin at $72.7 million, with the project having a pre-tax net present value of $241 million. 

While redeveloping Dolphin has been on the cards for the past 1-2 decades, the current geopolitical backdrop is strongly supportive of new supply ex-China. 

KIS' peer EQ Resources yesterday unveiled a $6.5 million raising for its Mt Carbine pre-development project in Queensland. 

Shares in KIS were up 12% to 25.2c in late morning trade, capitalising the company at $82.5 million.