PERTH (miningweekly.com) – ASX-listed Balamara Resources’ major shareholder Ample Skill has thrown its support behind the company’s plans to expand its European coal strategy by agreeing to subscribe to some $5-million in shares.
The share placement, comprising 66.5-million shares at a price of 8c each, would be undertaken subject to shareholder approval.
The share placement in Balamara would happen in lieu of a previously announced direct investment into Balamara subsidiary Coal Holdings, which holds the rights over the Nowa Ruda project, in Poland.
The previous investment involved a 15% strategic investment by Ample Skill in the Nowa Ruda project for a total of $5-million.
However, since the deal was originally inked in July, Balamara has introduced two further Polish coal projects into its existing portfolio, and both the company and Ample Skill have now recognised the need for the cash investment to be used across all three assets, instead of just Nowa Ruda.
As Coal Holdings had not yet issued any shares to Ample Skill, Balamara would make the share placement at a corporate level in lieu of the major shareholder cancelling its previously agreed 15% equity position in the subsidiary.
Balamara was hoping to deliver a maiden Joint Ore Reserves Committee-compliant resource at the newly acquired Mariola and Sawin projects, and to complete initial concept studies at Nowa Ruda and Mariola.