Group 6 Metals, a resource exploration and development company, announced the initiation of a strategic review to optimise its capital structure and explore potential mergers and acquisitions.
The company appointed MA Moelis Australia to lead the review.
To support the strategic review, Group 6 Metals has secured an increase of $4 million in its existing bridge facility agreements.
The funding, provided by four senior lenders, will extend the maturity dates of near-term debt, aligning with the timing of the review conclusion.
"The company is encouraged by the recent results in process plant performance and recoveries following the introduction of the high-grade 'C' lens," said Keith McKnight, Managing Director and CEO of Group 6 Metals.
"The appointment of MA Moelis comes at a pivotal time for the Company, where a recapitalisation and strategic investment will underpin the implementation of the plant optimisation plan," McKnight added.
The company has also undertaken cost reduction activities at its Dolphin Tungsten Mine, demobilising specific mining equipment and planning night shift operations.
The efforts aim to improve productivity and reduce costs in line with increasing production output.
Group 6 Metals Chairman, Johann Jacobs, added, "We are pleased to have the continued support of our senior lending group as we undertake this important strategic and operational review. We see the opportunity to deliver value to all of our stakeholders and set the company up for future success."
Group 6 Metals is focused on producing high-grade tungsten concentrate from its 100%-owned Dolphin Mine located on King Island, Tasmania.
At the time of reporting, Group 6 Metals’ share price was at $0.032.