WA Kaolin secures $16.1M to wipe debt
Industrial minerals producer WA Kaolin (ASX:WAK) finalised its partially underwritten, non-renounceable entitlement offer, injecting approximately $16.1 million to restructure its balance sheet.
The capital raising initiatives injected roughly $6 million in fresh cash before costs and wiped $10.1 million of debt from the company's ledger.
The recapitalisation enjoyed cornerstone support from WA Kaolin’s four largest shareholders, who contributed $14.9 million through a combination of direct cash subscriptions and substantial debt-to-equity conversions.
Participants included Century Horse with a $4.2 million cash subscription, and Boneyard Investment, which provided $0.5 million in cash alongside a $3.5 million debt conversion.
Further debt-to-equity conversions were executed by Scientific Management Associates and Wamco Industries.
Management confirmed the company now possesses sufficient working capital to pursue its core objectives at the Wickepin Project.
Proceeds from the offer are strictly earmarked for operational enhancement, specifically targeting plant efficiency, dust protection upgrades, and wear reduction initiatives designed to maximise kaolin yield while mitigating downtime.
With an expanded processing capability established during 2025, WA Kaolin is accelerating its operational strategy to achieve a sustained production target of 6,000 tonnes per month.
At the time of reporting, WA Kaolin’s share price was $0.10.
