Pallas and Elphinstone to help guide mine back from the brink

Group 6 Metals Limited (ASX: G6M) has confirmed that all resolutions presented at its General Meeting on April 23 were passed by poll, paving the way for the company’s major recapitalisation and operational restructure.

The resolutions endorsed by shareholders form a key part of the company’s recapitalisation plan, first announced in December 2024. That plan includes converting debt and creditor liabilities into equity, aimed at significantly reducing debt, strengthening the balance sheet, and providing necessary liquidity to support operational improvements at the company’s 100 percent-owned Dolphin Tungsten Mine on King Island.

The plan follows sustained financial challenges and a limited response to external investment offers. Group 6 Metals reached agreement with senior secured lenders, subordinated lenders, and major unsecured creditors to undertake the restructure.

The company also confirmed board and executive changes, including the appointment of a new Executive Chairman, Kevin Pallas and Tasmanian manufacturing magnate Dale Elphinstone joining the board as part of the leadership transition.

At the General Meeting, shareholders also approved the issue of shares and warrants to creditors and directors, along with the granting of security interests. Each resolution received more than 95 percent support, according to voting data released to the ASX.

Group 6 Metals, formerly known as King Island Scheelite Limited, is focused on producing high-grade tungsten concentrate. Tungsten is classified as a critical mineral due to its strategic importance in defence, electronics, and manufacturing, and is part of Group 6 on the periodic table alongside chromium and molybdenum.

The company’s operations align with the Albanese government’s expanded strategy to safeguard Australia’s sovereign supply of critical minerals. Amid rising geopolitical tensions and China’s dominance over global supply chains, the federal government has announced the creation of a strategic reserve designed to secure domestic access and bolster allied resilience.

Prime Minister Anthony Albanese said the reserve will be underpinned by National Offtake Agreements and stockpiling measures, enabling the government to acquire, store, and trade critical minerals for national interest.

“To leverage our natural resources is in our national interest,” Mr Albanese said. 

“The strategic reserve will mean government has the power to purchase, own and sell critical minerals found here in Australia.”

To further support the sector, the government is increasing the Critical Minerals Facility by $1 billion to help private developers overcome capital hurdles — a move expected to directly benefit companies like Group 6 Metals operating in strategically significant regions such as King Island.