King Island Scheelite Limited (ASX:KIS) has secured funding to progress plans to recommence production at its high-grade Dolphin Tungsten Project on King Island in the Bass Strait.
The company entered the $2 million loan agreement with executive director Chris Ellis, which has interest payable of 8% per annum above the bank bill swap rate (BBSW).
As required, shareholders will be requested to approve the details of the loan at the next annual general meeting (AGM).
The funds provide King Island with the necessary working capital to continue with its ongoing activities at the Dolphin mine site.
It also allows the company to further progress negotiations with potential financiers and joint venture partners, to secure the funding required to recommence production at Dolphin.
King Island’s chairman Johann Jacobs said: “Having the loan from Chris is of huge advantage to KIS and all its shareholders, as it provides KIS with the opportunity to proceed with negotiations on financing structures and progressing with operational milestones at the Project, ahead of finalising the financing plan for Dolphin.”
June feasibility study supports profitable tungsten mining operation
In early June 2019, KIS revealed positive results from its updated feasibility study and reserve estimate for the Dolphin Tungsten Project.
The study forecast an open-cut operation that would mine and process about 400,000 tonnes per annum of ore for eight years to produce about 3,500 tonnes of tungsten trioxide concentrate per year.
This concentrate will be selling into a market with strong growing demand and constrained supply.
Proactive caught up with King Island in early June 2019 for an update.