09/02/2022 - 17:31

WA Kaolin locks in Wickepin funding

09/02/2022 - 17:31

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Rockingham-based WA Kaolin has garnered $12 million via a placement and loan facility to fund the second stage of its Wickepin kaolin project southeast of Perth.

WA Kaolin locks in Wickepin funding
WA Kaolin has secured $12 million for its Wickepin project. Photo: WA Kaolin

Rockingham-based WA Kaolin has garnered $12 million via a placement and loan facility to fund the second stage of its Wickepin kaolin project southeast of Perth.

The company secured $6.1 million through a share placement which offered institutional and sophisticated WAK shares at 18 cents each.

Another 33.8 million WA Kaolin shares will be added to its register once the placement has been completed.

Funding is also comprised of a $900,000 share purchase plan and a $5 million loan facility.

Proceeds from the raise will allow WA Kaolin to accelerate stage two development at the Wickepin project located 220 kilometres southeast of Perth.

The business plans to move an existing kaolin processing plant from Kwinana to a mine site in Wickepin in the hopes of increasing production to 200,000t per annum within 12 months.

A second ramp-up stage is set to take production to 400,000t per annum.

WAK shares closed the day up 2.5 per cent to trade at 20 cents.

In other capital raising activities, oil and gas company Calima Energy is set to bank $20 million after offering up shares at 20 cents apiece to institutional investors.

In the short-term, Calima plans to use the funds to reduce the amount drawn on its revolving credit facility but will also put the capital towards its Brooks area and Thorsby wells.

News of the raise triggered Calima shares to fall sharply, closing the day down 13.04 per cent at 20 cents.

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