- King River Resources marked an impressive quarter despite COVID-19 restrictions, as the Company continued its PFS-related activities at Speewah Specialty Metals (SSM) Project.
- The recent capital raising through a security purchase plan and a placement with professional and sophisticated investors is directed at progressing project activities and working capital.
- KRR, on the back of notable developments, has advanced significantly concerning SSM PFS, which is anticipated to be released soon.
Manoeuvring forward smoothly by virtue of its sheer exploration efforts, King River Resources Limited (ASX: KRR) appears to have carved significant developments on its exploratory records. The impressive June quarterly results are a testament to the substantial progress, attesting the steadfast strategic efforts being delivered by the Company.
The expanse of KRR’s endeavours seems to stretch far beyond mineral exploration and development, instilling financial stability and consistent progress to the projects. Advancing on a similar note, the Company has closed the placement of more than 66.66 million shares plus one free attaching option for every two shares issued, to raise an amount of $2 million.
A significant portion of the quarter considerably coinciding to the COVID-19 outbreak and lockdown restrictions witnessed volatile scenario. Nevertheless, King River Resources continued to advance its Speewah Specialty Metals Project on the growth trajectory, with remarkable victory in achieving >4N High Purity Alumina production and accomplishment of significant aspects of Prefeasibility Study (PFS) on the wholly owned project.
With this backdrop, let us explore what were the key activities in three months from April to June that kept King River Resources in the limelight.
Production of 4N HPA
King River Resources in April 2020 reported the production of first >4N (99.99 per cent Al2O3) High Purity Alumina (HPA) by means of a new process development by its metallurgical consultants, TSW Analytical Pty Ltd (TSW).
The striking accomplishment was supported by past developments.
KRR during the June quarter reported on metallurgical testwork results and progress concerning the compilation of Prefeasibility Study on the flagship asset, Speewah Specialty Metals Project, ideally located in Western Australian East Kimberley region.
The focus of King River Resources is to primarily scale the SSM project for the production of High Purity Alumina, followed by producing potential co-products, including Vanadium (V2O5), Titanium (TiO2) and Iron (Fe oxide), which are not covered as part of the PFS. It would foster a substantial reduction in the project size, thereby prospectively reducing the capex and maximising returns.
Hydrometallurgical testwork and flowsheet developments
The Company was successful in carrying out the calcination process of the precursor of High Purity Alumina at 1200°C, which has favoured towards reducing transfer losses that beforehand were lost on the final wash. KRR believes that it would convert the HPA product to alpha alumina.
Meanwhile, KRR also achieved the stage 2 purification precipitation recovery of 81.5 per cent Al, surpassing the targeted recovery set at 80 per cent for the stage of the process for the PFS.
The Company has identified a few contamination sources in the reagents utilised and from some equipment. Using leaches from magnetic magnetite-ilmenite concentrates for producing the potential co-products, KRR is carrying forward solvent extraction testwork.
CSA Global has completed the mining study aside from environmental and marketing reports.
Plant and infrastructure design along with costings by Como Engineers, are almost finished, and is anticipating final model validation and review.
As of 30 June 2020, cash position of King River stood at $578,178. The Company during the quarter also received a Research & Development Tax Rebate of $385,064.
To fund the expenditure related to prefeasibility and working capital, KRR increased the loan facility to $0.5 million with maturity date extended to 30 June 2021. The loan facility with Harvey Springs Estate Pty Ltd, which is controlled by Anthony Barton, was drawn down in full before 30 June 2020.
Furthermore, for pursuing ongoing activities concerning the continuing development and exploration and general working capital, the Company has undertaken capital raising programs, which include-
Security Purchase Plan (SPP)- KRR has offered participation opportunity to eligible shareholders via SPP, with an issue price of $0.033 per share plus one free attaching option for every two shares issued.
Placement with professional and sophisticated investors- KRR received $2 million following a successful placement with professional and sophisticated investors.
The directors have continued to defer payments of director fees to ensure cash availability for supporting development of the varying projects.
King River is advancing activities to finalise the Speewah Specialty Metals Project PFS, while at its high-grade gold projects, Mt Remarkable Project and Treasure Creek Project, KRR is set to kick off exploration programme next month.
On 27 July 2020, KRR stock closed the day’s trade at $0.033, with a return of 61.90% in the year-to-date period.
(Note: All currency in AUD unless specified otherwise)