https://www.miningweekly.com

Cokal raises cash to advance BBM

23rd February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – ASX-listed Cokal will raise A$16-million to accelerate metallurgical coal production at its Bumi Barito Mineral (BBM) project in Indonesia, where first saleable coal was recently produced.

Cokal on Thursday announced that it would place 100-million new fully paid ordinary shares to institutional and sophisticated investors, at a price of 16c each, representing a 13.5% discount to Cokal’s last trading price.

The shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.

M Resources, and its chairperson and president Matt Latimore, will subscribe for A$5-million in the placement.

“Cokal is delighted with the strong support for the placement. In addition to M Resources’ cornerstone investment, we are pleased to welcome a number of high profile domestic and international institutions as well as new sophisticated investors to the Cokal share register, while also thanking existing investors for their support in the raising,” said Cokal CEO Karan Bagnur.

“Collectively, we believe that this provides strong endorsement for Cokal’s strategy in advancing its now-producing metallurgical coal assets. With production having commenced in October 2022, initial coal sales expected very soon, logistics chains being optimised and production ramping up in a buoyant coal price environment, we believe Cokal is very well positioned to drive considerable shareholder value in both the short and longer term.”

Proceeds from the placement will be used to fund a number of initiatives in 2023, including progressing the ramp-up of saleable production to two-million tonnes a year and beyond over the next two years, building a fully automated conveyor loading and unloading system at the Batu Tuhup Jetting, and completing a drilling programme at resource definition at its other assets.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION