Bowen secures A$50m funding for Ellensfield ramp-up
Queensland-based Bowen Coking Coal on Thursday announced a A$50-million equity raising to fund the ramp-up of mining at Ellensfield South pit until it achieves steady-state production in the second half of the 2024 financial year.
The equity raise will consist of a fully underwritten offer of fully paid ordinary shares through an institutional placement to raise A$17-million and a one-for-six prorata accelerated nonrenouncable entitlement offer to existing shareholders to raise A$33-million.
The offer price for both the placement and entitlement offer will be A$0.90, which represents an 18.2% discount to Bowen’s last closing price of A$0.11 a share and a 15.1% discount to the theoretical ex-rights price of A$0.106 a share.
Kirmar has committed to a A$16-million investment in Bowen on the same terms as the committed shareholders. Kirmar is an affiliate of Kirmar Trust, which holds a 50% stake in the AMCI group. AMCI has several mining operations in Canada, the US, Australia, Chile and South Africa.
Bowen noted that Kirmar was keen to participate in the growth of the coal company, which has significant synergies with the neighbouring Fitzroy operation.
The Ellensfield South pit forms part of the Burton Complex. At steady state, the pit will produce 2-million to 2.4-million tonnes a year for three years, after which the mining fleets are expected to relocate into the larger Plumtree North pit.
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