Throughout the June quarter, the company reported on metallurgical test-work results and progress in compiling the Speewah PFS in the East Kimberley of Western Australia.
KRR plans to initially scale the SSM project to produce high purity alumina (HPA) with vanadium, titanium and iron as potential co-products at a later stage, but not included as part of the PFS.
This should significantly reduce the size of the project, with the potential to reduce the capex and maximise returns.
This week the company completed a placement of more than 66.666 million shares plus one free attaching option for every two shares issued to raise $2 million from professional and sophisticated investors.
As well as funding ongoing development studies on the HPA and V-Ti projects at Speewah, funds will be used to bring forward gold exploration programs at King River's Mt Remarkable and Tennant Creek gold projects.
Placement shares have been issued and the options are expected to be issued on or around the same time as the security purchase plan options (SPP) are to be issued.
The SPP was announced June 23, 2020, and July 9, 2020, with documentation and application forms posted to eligible shareholders on July 14, 2020.
This provides for shareholders to be able to each purchase up to $30,000 worth of additional shares in the company at $0.033 per share and includes one free attaching option for every two shares issued.
Each option will have an exercise price of $0.06 and an expiry date of July 31, 2022.
This capital raising exercise will boost the company’s cash position which at the end of the June quarter totalled $578,178.
Test-work and studies
The following hydrometallurgical test-work and studies are outstanding:
- Plans to repeat the previously reported 4N HPA product (>99.99% Al2O3) result to produce a larger sample to provide for verification analyses;
- Confirm the HPA is 100% alpha-alumina by an X-Ray Diffraction (XRD) analysis; and
- Further test-work to improve overall recoveries and reduce reagent and acid consumptions.
A Mining Study by CSA Global is complete, in addition to the marketing and environmental reports.
Como Engineers' plant and infrastructure design and costings are largely completed, waiting on final model validation and review.