King Island Scheelite (KIS)

Shares / Stock Code

KIS

Stock Exchange / Sharemarket

Australian Securities Exchange

King Island Scheelite (KIS) is a tungsten exploration company. Exploration companies aim to discover and delineate occurrences of minerals that can be economically mined and extracted.

KIS listed on the Australian stockmarket (ASX) on 21 September, 1967. In 2005, the company acquired ATPL, owner of the King Island Sheelite mine redevelopment project. In October 2005, GTN Resources shareholders voted to change the name of the business to King Island Scheelite.

KIS's owns 100% of the King Island Sheelite project, which contains one of the world's richest scheelite resources. The project contains the remaining sources of the King Island Scheelite mine, which was in operation between 1917 and 1990.

Major competitors consists of other mining companies in Australia and overseas, in particular China. Consumers include both domestic and international industrial companies.

By 2005 GTN had exited from most of these operations, and purchased the rights to the mineral tenements on King Island through its acquisition of Australian Tungsten Pty Limited. To reflect this new focus, GTN changed its name to King Island Scheelite Limited.

The King Island development is the major asset of the company. In 2005 and 2006 KIS undertook a feasibility study to examine the prospects of reopening the mine, and concluded that, given the strong recovery in tungsten prices on the world markets since 2003, the operation could be viably redeveloped.

In 2007 refinement work continued on the feasibility study, while KIS examined options for financing the construction of the project. The Board and Management of the company concluded that the optimal course for KIS would be to seek a joint venture partner who not only was experienced in the tungsten industry, but who also could bring financial resources to the project.

KIS subsequently entered into joint venture agreements with Hunan Nonferrous Metals Corporation Limited in December 2007. These agreements provided for the establishments of an equal share, unincorporated joint venture - the Dolphin Joint Venture (DJV) to develop the King Island resource. In addition:

  • HNC agreed to subscribe to 4,450,000 shares in KIS
  • HNC would be granted a seat on the KIS Board;
  • and HNC would loan to KIS its share of the costs of construction.

The conditions subsequent in these agreements were finalised in September 2008.

The DJV Committee has been established and a work program agreed for the first half of 2009. This involves a program of geotechnical drilling designed to further test ground condistions, both in the eastern side of the planned openIt is anticipated that the Project will move towards full engineering design and the procurement of key, long lead time items in the second half of 2009. The expectation from earlier design work is that total construction would take f about two years, subject to the delivery of long lead time items.

KIS continues to look for other opportunities and to that end has executed a joint venture agreeement to explore for tin and tungsten within the Pleiades Resources Pty Ltd Tenements in Western Australia.

King Island Scheelite (KIS) Products and Services

  • Development of the King Island scheelite deposit and exploration for tin & tungsten

King Island Scheelite (KIS) Locations and Subsidiaries

King Island Scheelite Head Office
Level 9, 1 York Street,
SYDNEY, NSW, AUSTRALIA, 2000
Phone: (02) 8622 1400
Fax: (02) 8622 1401

King Island Scheelite (KIS) Share Price

Submitted by ASX Listed Company on 10 May, 2010 - 05:31

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