Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Stanmore Coal has raised A$15-million through a share placement that will fund an accelerated pre-stripping programme and build inventory stockpiles at its Queensland assets.
The company placed 27.3-million shares, priced at 55c each, to raise the funds.
The offer price represented a 12% discount to Stanmore’s last closing price on December 12, and a 15% discount to the five-day volume-weighted average price of Stanmore shares.
“This capital raising is an important step for the company to invest in prestripping activities and coal stockpiles in order to derisk the business,” said Stanmore chairperson Neville Sneddon.
“With the working capital available from the raising, together with the undrawn $6-million Taurus working capital facility, the company, in the event of wet weather, will have sufficient funding available to cater for production outages of several weeks duration.”
Sneddon says that Stanmore has been in discussions with its contractor in relation to a revised mine plan that alters the short-term plan, while materially maintaining the contract term production objectives.
The company has maintained its 2017 production target of 1.25-million tonnes of coal from its Isaac Plains operation, in Queensland.