Kalia Limited (ASX: KLH), based out of West Perth, is engaged in extraction and evaluation of gold, copper as well as energy metals deposits. As of date, its principal interest lies in the exploration of copper and gold at the Mt. Tore region in Papua New Guinea’s Bougainville Island; and copper, iron oxide, gold and uranium minerals in Australia.
On March 11th, the company announced the successful completion of filtering and modelling of the airborne survey data (Geophysical interpretation) collated over its Tore Joint Venture properties on Bougainville Island during the third (Q3) and fourth (Q4) quarters of 2018. The final report was submitted by Fathom Geophysics, an independent organisation that provides geophysical and geoscience data processing and targeting services to the minerals and petroleum exploration industries. The geochemical sampling was completed around mid-February 2019.
The survey covered the entire 1,704-km2 licence areas EL03 and EL04 while the independent data analysis deduced that the intrusive complex is more extensive than previously assumed, with multiple shallower cupolas thrown up from the central dome. Besides, around 64 porphyry and epithermal targets have been identified across the area encompassing 12 Priority 1 targets. As per the report, the independent correlation between geophysics and geochemistry highlights the robustness of the modelling and high prospectivity of the region.
The Tore Joint Venture (TJV) was incorporated between the Company and the Landowners to explore for economic minerals in the Tore region. The commencement of drilling is scheduled for Q2 2019.
As per the company’s quarterly cash flow for the quarter ended December 31st, 2018, there were significant cash outflows of AUD 1.23 million from operating activities including AUD 595K of payments for exploration and evaluation, AUD 284K of staff costs and AUD 288K of administration and corporate expenses. The investing activities also resulted in cash outflows to the value of AUD 13K an account of payments to acquire plant, property and equipment.
On the contrary, the financing activities undertaken by the company during the quarter led to net cash inflows amounting to AUD 1.254 million, mainly arising from the proceeds from borrowings. At the end of the concerned period, the net cash and cash equivalents with the company stood at AUD 100K. In addition, Kalia Limited estimates the cash outflow for the next quarter to be approximately AUD 1.1 million.
Besides, the company also reported a number of activities undertaken in its quarterly operations report for the same period, when the Australian Securities Exchange (ASX) granted the company a conditional waiver of ASX Listing Rule 10.1, enabling the company and subsidiaries to grant a first ranking security over its assets in favour of Tygola Pty Ltd to secure the company’s obligations under a further secured loan facility of $ 1 million provided by Tygola without obtaining shareholders’ approval.
Under the new facility, a total of $ 1 million repayable by June 28th, 2019, is to be advanced to the fund working capital required for exploration work at the Tore Project in Bougainville.
Kalia Limited has a market cap of AUD 5.03 million with ~ 2.51 billion outstanding shares. At the end of the trading on March 11th, the KLH stock closed at AUD 0.004, absolutely skyrocketing and doubling from its previous day’s close of AUD 0.002. The KLH stock has also generated a positive YTD return of 25% so far.
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