History
A collapsed smart-card maker under Chinese-linked owners rebuilt itself as Kaili Resources, relisted in 2015, and after years of coal, gold and iron work now explores for rare earths in South Australia.
2007-2009: Collapse and suspension
The company, then called Omnitech Holdings, began 2007 by selling its loss-making VFJ Technology smart card business for about A$1,637 cash. VFJ had net liabilities of about A$5.1m, so a gain of about A$1.9m was expected. It did not turn things round. ASX suspended the shares in February 2008 pending clarification of the forecast results, and the 2007 annual report called the year disastrous: turnover fell 50.21% to A$16.55m and the loss before tax was A$15.99m, against a A$2.9m profit in 2006. The Dongguan factory of subsidiary Lik Hang closed in March 2008. By the first half of 2008 turnover had fallen 91.5%, and a Hong Kong bank creditor had served a winding-up petition on Lik Hang claiming about A$320,000.
In January 2009 the company said it had cut costs and intended to recapitalise. ASX warned it would reassess the company under listing rule 12.1, and on 31 July 2009 suspended the shares until the company could show it met the rules on level of operations and financial condition. On 30 December 2009 majority holder Hai Yang agreed to sell its 38,125,983 shares and its roughly A$7.89m shareholder loan to an independent purchaser, and control changed hands.
2010-2014: New owners and a coal start
The record is quiet until November 2012, when long-serving chairman Arthur Sturgess resigned and new owners' nominees took the main roles. In March 2013 the company took an A$800,000 loan from Supermax Group and agreed to buy APEC Coal for A$300,000. APEC held two Queensland coal exploration tenements in the Clarence-Moreton Basin, the first acquisition since the 2008 shutdown. Shareholders approved the change to coal exploration, a name change, a placement of up to A$393,000, and A$6.5m of convertible notes issued to Treasure Unicorn. In August 2013 the company raised A$390,000 by issuing 3.9 million shares at A$0.10.
By December 2013 the Supermax loan had been repaid early, and the convertible notes converted into 36,111,111 shares, leaving the company debt free. Both tenements were renewed in November 2013. Shares on issue rose from 49.5 million at the end of 2012 to about 90.3 million at the end of 2014, helped by 11 million shares issued in April 2014 to buy ASF Kaili Resource, which held two Western Australian tenements, for A$605,000. That month chairman Yuanqing He and managing director Wing Onn Chong resigned, and Jianzhong Yang became chairman.
2015-2017: Back on the market
The December 2014 quarter brought in A$2.278m from share issues, lifting cash to A$2.4m. A prospectus was lodged in February 2015 for a public offer to meet ASX re-admission requirements, and the suspension in place since 2009 was lifted on 31 March 2015. In September 2015 the company set up Kaili Gold and Kaili Iron subsidiaries to explore for gold and iron ore. In early 2016 it decided to drop the Western Australian coal and diamond tenements, finding the coal too deep and the diamond prospects poor.
Drilling at the Maryvale coal project in Queensland in June 2016 completed six holes totalling 1,228m, and all but one reached the targeted seam. Five Western Australian gold tenements and the first Pilbara iron tenement were granted in mid-2016. In February 2017 the company reported a maiden inferred coal resource for gasification of 97 million tonnes at Maryvale.
2018-2020: Yitai takes over and the listing is questioned
Drilling at Jungle Hill in 2018 gave weak results, with the best gold at 4m at 0.729ppm and a narrow, low-grade iron zone. Cash fell to A$355k by September 2018, and the largest shareholder promised up to A$1m of support. In November, Yitai-linked directors took over the board, with Yitai's subsidiary holding 37.42%. A fully underwritten 1-for-2 entitlement offer at A$0.036 aimed to raise about A$1.769m, but shareholders took up only 10.17m of 49.13m new shares. Underwriter Treasure Unicorn took the rest, so the full amount was raised and Yitai's stake rose. Shares on issue reached about 147.4 million.
In 2020 the company gave up its three Pilbara iron tenements, and Yitai offered up to A$2.5m of interest-free support. In April 2020 ASX formed the view that its operations were not sufficient to justify listing and set a deadline of 23 October 2020. Drilling at Canegrass and Holey Dam began in September 2020; the best result was 1m at 3.96 ppm gold at Canegrass. The outcome of the ASX notice is not recorded.
2021-2024: From gold to rare earths
Halls Creek rock samples in 2021 returned gold to 2.78 g/t and zinc to 12.6%. Canegrass drilling in 2022 gave modest gold results, the best 3m at 0.6 g/t. In October 2022 the company was granted a South Australian licence to explore for rare earth elements in clays. In 2023 drilling at Holey Dam found rare earth oxides up to 866 ppm over 1m, and focus shifted from gold to rare earths. Two more South Australian licences were granted in February 2024, bringing the Limestone Coast holding to 1,985 km2. First aircore results at Lameroo were low, best 1m at 356 ppm.
In October 2024, after Yitai decided to end its debt facilities, the company surrendered the Halls Creek tenements and Canegrass.
2025-2026: A new controller and a thin balance sheet
Yitai stopped ongoing funding in March 2025, with its interest-free loans totalling $4.6m and repayment extended to April 2026. Holey Dam was surrendered. In August 2025 Yitai divested its interests and Jianzhong Yang became chairman. Through Kaili Holdings, a related entity that holds 8.96%, he backed the company with funding, later raised to up to $1.75m until October 2027. The company told ASX that Yang controlled 60.34%, though the register showed Treasure Unicorn at 51.21%, and that difference is unresolved.
Road-verge drilling in September 2025 found a best of 1m at 517 ppm total rare earth oxides, and a second program in early 2026 found 1m at 812.5 ppm. Both were single-metre intercepts, with no resource. At 31 July 2026, results from 16 infill holes drilled in July at Coodalya were awaited, further drilling at Karte and Lameroo was identified, and the Kovacs application in the Northern Territory had been withdrawn. Management planned a recapitalisation and was seeking copper, gold, silver or base metals projects.
Written from the 63 story beats below (2007 to 31 July 2026), which come from the company's own announcements and filings.