https://www.miningweekly.com
Coal|PROJECT|Environmental
Coal|PROJECT|Environmental
coal|project|environmental

Allegiance issues note for US coal funds

31st July 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Canada-based Allegiance Coal has secured up to A$8-million in funding through a convertible note issue to investment fund Mercer Street Global Opportunity Fund.

The ASX-listed company on Friday said that this was the first leg of funding to return the New Elk mine, in Colorado, to production, complete the environmental assessment work necessary to lodge an application for an environmental assessment certificate, and to provide general working capital.

“This investment shows confidence in Allegiance moving closer to securing the full start-up capital requirement to return the New Elk mine to production in 2021, by which time resource analysts are suggesting hard coking coal prices will return to pre-Covid-19 levels,” said Allegiance chairperson and MD Mark Gray.

“In addition, we are well advanced to filing for the environmental assessment certificate for the Tenas project. These are both significant milestones for Allegiance and this convertible note allows us to progress these activities.”

The note will be conducted in two drawdowns, of A$2-million and A$6-million respectively, and will have a term of 12 months, starting from each drawdown.

The note drawdowns will be interest free, but will be issued at an original discount of 16.67% in the case of the first drawdown and 15% in the case of the second, with the note value of the first drawdown amounting to A$2.3-million, and the second up to A$6.9-million.

The notes are convertible at Mercer Street’s election into Allegiance ordinary shares, with the conversion price for the first drawdown being the lesser of 10c a share or 92% of the lowest daily volume weighted average price of Allegiance shares for the ten trading days immediately prior to conversion.

For the second drawdown, the conversion rate would be at the lesser of 15c a share or 90% of the lowest daily volume weighted average price for Allegiance shares in the ten days prior to the conversion notice, subject to Allegiance having sufficient capacity under its existing placement capacity under ASX rules.

Edited by Creamer Media Reporter

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.091 0.131s - 108pq - 2rq
Subscribe Now