Somebody out there likes the look of a Tasmanian mining hopeful, to the extent the ASX issued it a “please explain” over its spiking share price.
The ASX on Monday asked King Island Scheelite Limited if there was any information it had not released to the market which could explain recent trading in its securities if it was known by some people in the market.
The company said it was not aware of any such information and it was in compliance with the listing rules.
The query followed a jump in the tungsten hopeful’s share price from a low of 6.2c on August 27 to a high of 13.5c on Monday.
The company had its biggest share trading day in at least a year on Monday, with more than 620,000 shares changing hands.
The company is working towards a decision on whether to proceed to mining at its Dolphin Project, near Grassy.
In its 2017-18 annual report, issued on August 7, it said discussions were continuing with “reputable offtakers” for all of Dolphin’s output.
“Budget costing of a complete processing plant is under way, as is a mine plan review utilising articulated dump trucks and smoothing production,” it said.
“Test work from the metallurgical drilling program continues, with the first of the three core samples currently undergoing comprehensive testing at a Burnie laboratory.”
The company raised $1.49 million through a renounceable rights offer which closed on July 25.
It said the money would be used over a forecast 15 months for administration and to complete mine planning, geotechnical drilling and laboratory analysis leading to a “potential decision” on redevelopment of previously mined Dolphin.