King Island Scheelite (ASX:KIS) has initiated a 1 for 8 rights issue priced at $0.12 in order to raise 2.027 million to advance its Dolphin and Bold Head tungsten projects on King Island just off Tasmania.
The issue is partially underwritten up to $922,000 by two major shareholders, and certain major shareholders have already committed to $1,105,000.
The company was last month granted a mining lease over the Dolphin Tungsten Mine on King Island, Tasmania, that was previously operated from 1917 and closed in 1990 due to extremely low tungsten prices.
In April, it announced that it had largely completed a New Development Plan as an enhancement to the Dolphin and Bold Head Project Low Cost Option development plan.
This raising is expected to fund working capital for at least the next 12 months, during which KIS will further de-risk project development by de-watering the open cut void, undertaking a drilling program and further metallurgical test work, as well as progressing funding arrangements.
KIS is focused on redeveloping the original scheelite mine on King Island, with the resource comprising remnant ore bodies at Dolphin, Bold Head and tailings of 9,109,000 tonnes, containing 81,720 tonnes tungsten.
The company is presently valued at around $16 million.
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