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Balamara shareholder pumps money into Polish project

2nd June 2014

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Australian junior Balamara Resources has secured a direct equity investment into its flagship Nowa Ruda coking coal project, in Poland, which will cover drilling and feasibility costs through to mid-2015, when it is targeting a decision to mine and will seek project development funding.

Balamara’s major shareholder, Hong Kong-based Ample Skill, has agreed to invest $5-million in Polish subsidiary, Coal Holdings, which holds the rights over the Nowa Ruda project. The transaction is subject to shareholder approval.

Once completed, the investment will give Ample Skill a direct 15% equity interest in the Nowa Ruda project along with a 37% stake in Balamara.

“The investment in Coal Holdings reflects a valuation in the Nowa Ruda project of about $36-million, which is a strong endorsement of the significant progress made by Balamara since acquiring the asset in July 2013,” Balamara reported in a statement.

The equity investment also removed the need for a further capital raising and associated dilution at the Balamara corporate level over the near term.

Edited by Creamer Media Reporter

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