PERTH (miningweekly.com) – Coal miner Allegiance Coal has fallen short of its A$33.6-million capital raise aspirations.
The company in October launched an eight-for-five entitlement offer, priced at 4c a share, to raise up to A$33.6-million before costs. The institutional component of the entitlement offer was completed last month, raising A$15-million.
Allegiance on Monday said that the retail component of the offer had now closed, with 181.5-million shares subscribed for, raising A$9.07-million.
Proceeds of the capital raising are to be applied towards equipment purchases and refurbishment at Black Warrior and New Elk mines, in the US, and for working capital and offer costs.
“We are delighted with the participation from our existing shareholders. We now have the financial support to optimise our assets, leveraging the favourable coal demand environment,” said CEO Jonathan Romcke.
“We look forward to delivering strong outcomes for new and existing investors as production ramps up,” he added.