ASX: KIS
Market Capitalisation $13.2 million Shares on Issue 165.3 million
52 Week High 16.5 cents
52 Week Low 7.5 cents
Share Price 8.0 cents
HIGHLIGHTS-
Revised updated Reserve Statement issued
Board of Directors
Johann Jacobs Allan Davies Chris Ellis
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Secured up to A$2 million funding through the issue of Convertible Notes. The funds are to be drawn down in two tranches, the first A$1 million was drawn during December 2015, whilst the next A$1 million will be drawn if required
Chairman
Director Director
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Work continued on finalising the Definitive Feasibility Study
Tungsten APT USD 16,750 / tonne (26
January 2016)
King Island Scheelite Limited (KIS)
through its 100% Dolphin Project on King Island, Tasmania is one of the world's richest tungsten deposits and could meet a significant proportion of the world's tungsten requirements over a minimum 13 years.
King Island Scheelite Limited ABN 40 004 681 734
Level 26, 259 George Street Sydney NSW 2000
GPO Box 5154
Sydney NSW 2001 P. +61 2 8622 1400 F. +61 2 8622 1401
www.kingislandscheelite.com.au
- Meetings held with Environmental Protection Agency to amend prior approvals
- Annual General Meeting held 15 October 2015
King Island Scheelite Limited (Company) is pleased to present its activity report for the quarter ended 31 December 2015.
Revised Updated Reserve StatementDolphin open‐cut reserve statement was re‐issued, compliant with JORC 2012 and indicating:
Probable Reserves of 3.14 Mt at 0.73% WO3(at 0.2% WO3cut‐off), for a total of 22,900 tonnes of WO3
Compares to previously reported Probable Reserves of 1.90 Mt at 0.55% WO3(at 0.2% WO3cut‐off), for a total of 10,450 tonnes of WO3
Average strip ratio of 9.7:1 tonne for tonne (previously 3.1 tonne for tonne)
This will support an open‐cut mine life of 8 to 9 years (previously 4‐5 years)
Total Indicated Resources for Dolphin remain 9.60 Mt at 0.90% WO3(at 0.2% WO3cut‐off) for 86,400 tonnes of WO3.
Definitive Feasibility Study ("DFS")Work continued on the consolidation of recent studies into a Definitive Feasibility Study. Ironstone Capital, the Company's financial advisors, have compiled an Information Memorandum, which will be circulated to interested finance providers.
It is anticipated that the DFS will be completed during next quarter.
Environmental Protection Agency ("EPA")The Company continued discussions with EPA on amending the previously granted approvals to be consistent with the operations envisaged in the current DFS.
FinanceCash Balance
As at 31 December 2015 the Company's cash balance was $1.5 million.
Convertible Notes
During the December 2015 Quarter the Company secured up to A$2.0 million funding through the issue of Convertible Notes. The funds are drawn down in two tranches, the first A$1.0 million was drawn during December 2015, whilst the next A$1.0 million will be drawn if required. The principal terms of the Convertible
Notes are:
Face Value A$500,000 each
Interest Rate 8% per annum
Maturity Date 31 December 2016 or on being repaid whichever is earlier
Unsecured
Conversion or repayment is at the sole discretion of the Company
Conversion price is lower of 15% below either any major capital raising, or 30 day VWAP where no capital raising takes place
As required by the ASX Listing Rules, prior to any conversion the Company would request shareholder approval at a General Meeting.
Funds will be utilised to finalise the Definitive Feasibility Study and general working capital.
KIS group activities have related to exploration, there have been no activities relating to production or development.
Tenement reference | Nature of interest | |
Mining tenements held at the end of the quarter | Exploration Licence EL 19/2001 at Grassy, King Island, TAS (91 sq kms) | 100% ownership |
Mining Lease Application MLA 1M/2006 at Grassy, King Island, TAS (544 hectares) | 100% ownership | |
Mining tenements acquired during the quarter | Nil | Nil |
Mining tenements relinquished during the quarter | Nil | Nil |
Beneficial percentage interests held in farm‐in or farm‐out agreements at the end of the quarter | Nil | Nil |
Beneficial percentage interests in farm‐in or farm‐out agreements acquired or disposed during the quarter | Nil | Nil |
Following is a summary of the expenditure incurred on exploration activities during the quarter:
$'000
Dewatering 13
Project management 46
Mine planning & geological work 55
Environmental 19
Water & tailings management 17
Other Feasibility Study work 13
163
MarketsAmmonium paratungstate (APT) is currently trading at an average of US$16,750 (A$23,900) per tonne (September US$17,000(A$23,500) per tonne).
Johann Jacobs
Chairman
29 January 2016
King Island Scheelite Limited
Level 26, 259 George Street Sydney NSW 2000
Phone (02) 8622 1400
Fax (02) 8622 1401
Email info@kisltd.com.au
For further information go to the company's website www.kingislandscheelite.com.au
King Island Scheelite Limited issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 14:01:09 UTC
Original Document: http://www.kingislandscheelite.com.au/client-assets/1519665.pdf