The company has potential for sustainable production of 500,000 green tonnes per annum, adding around 6% to Australia’s timber exports.
Eucalyptus globulus grown on Kangaroo Island is expected to be equal to the best quality woodchips currently exported from Australia.
KPT recently entered into a Memorandum of Understanding with Mitsui Bussan Woodchip Oceania Pty Ltd creating an exclusive marketing arrangement.
The company is now preparing to outline details of a placement to sophisticated investors, and the ASX has granted a trading halt.
The halt will remain in place until the opening of trade on Monday 4th December 2017, or earlier if an announcement is made to the market.