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WA Kaolin Ltd. ( (AU:WAK) ) just unveiled an update.
WA Kaolin has restructured approximately $20.4 million in loan facilities with major shareholder and lender Scientific Management Associates, extending maturities by 12 years to 31 December 2037, easing short‑term refinancing pressure and allowing cash flow to be directed to operational ramp‑up. The SMAV loan, now secured by a first‑ranking general security over the company’s assets subject to an ASX Listing Rule 10.1 waiver, carries a 5% interest rate with stepped‑up repayments triggered by significant capital injections or revenue growth, and grants SMAV the right to appoint a non‑executive director while the debt remains outstanding. In parallel, WA Kaolin has put in place a $1.5 million working capital facility with related‑party Wamco Industries, to be secured on a second‑ranking basis and repayable by 31 December 2028, after third‑party funding discussions failed to yield comparable terms. The board says these measures were commercially necessary in light of constrained liquidity, limited access to conventional debt markets and near‑term cash flow constraints, positioning the company to continue operations and pursue its commercial strategy while managing balance‑sheet risk, albeit with increased asset security granted to key lenders.
The most recent analyst rating on (AU:WAK) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on WA Kaolin Ltd. stock, see the AU:WAK Stock Forecast page.
More about WA Kaolin Ltd.
WA Kaolin Ltd is an Australian industrial minerals company focused on the production and development of kaolin products from its operations in Western Australia, supplying feedstock for sectors such as ceramics, paper, paints, coatings and other industrial applications. The company is listed on the ASX and relies on a combination of shareholder and related-party funding to support its project development and operational ramp-up.
Average Trading Volume: 278,454
Technical Sentiment Signal: Sell
Current Market Cap: A$18.15M
See more insights into WAK stock on TipRanks’ Stock Analysis page.