Photo by: Bloomberg
PERTH (miningweekly.com) – Coal miner Atrum Coal will raise some A12.6-million through a share placement and entitlement offer to complete the acquisition of the Elan coking coal project, in Canada, and to start an aggressive exploration programme at Elan South.
The miner on Wednesday reported that an initial A$8-million will be raised through a two-tranche share placement to institutional and sophisticated investors, with the first tranche consisting of 30.5-million shares, priced at 10c each.
The first tranche will be placed under the company’s existing placement capacity.
The second tranche of 49.5-million shares, also priced at 10c each, will be subject to shareholder approval.
In addition to the share placement, Atrum will also undertake a one-for-five non-renounceable entitlement offer, priced at 10c a share, to raise an additional A$4.6-million.
Atrum told shareholders that the funds raised would be used to fund the cash component of the Elan acquisition, which would be completed before the end of March this year, as well as exploration activities at Elan South, which currently had an opencut resource estimate of seven-million tonnes indicated and 29-million tonnes inferred, and an exploration target of some 200-million tonnes.
Atrum in August last year entered into a share sale deed to acquire Canada’s Elan Coal’s properties in Alberta. As consideration for Elan, the vendors would receive C$3.1-million in cash, while Atrum subsidiary Kuro Coal Canada would also issue some A$3.65-million in scrip.