Time for minority shareholder to pony up, says Kalia boss
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The boss of copper and gold play Kalia — which was questioned by the ASX last week over its negative cashflow — says it won’t be long before the Bougainville-focused explorer lays its hands on more cash.
Kalia — which is now on the ground in Bougainville Island after securing historic exploration licences — raised $1.44 million in October and expects to raise close to the same amount in an upcoming placement.
Kalia (ASX:KLH) also told the ASX it was pursuing funds due from a minority shareholder in a subsidiary.
“We’ve got a minority shareholder in the subsidiary and they need to contribute an amount to maintain their equity,” Kalia managing director Terry Larkan told Stockhead.
“So they’ve got to put in a fair amount of money as well because we’ve been funding that. That’s a source of funds as well that will keep us going.”
Kalia had sufficient cash to see it through to the first quarter of 2018 and had other avenues to pursue for further cash injections after that, Mr Larkan said.
“Where we are at Bougainville is a sought-after location and highly prospective, so we’ve got a number of [investors] at this stage,” Larkan explained.
Kalia now has people on the ground in Bougainville undertaking initial field work, including rock chip sampling ahead of the Christmas break.
The company is still seeking clarification on legal action brought against it by Central Exploration, Central Area and RTG Mining (ASX:RTG) earlier in November.
The action is believed to be related to a legacy relationship that subsidiary Kalia Holdings had prior to its merger with GB Energy.
The matter involves an alleged breach of a deed of settlement on activity relating to the 1.5-billion-tonne Panguna copper-gold mine, which lies 60km southeast of Kalia’s exploration licence areas.
The legal action is not expected to have any impact on Kalia’s recently granted tenements, Mr Larkan said.