Allegiance raises funds for Tenas

14th June 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Allegiance Coal will raise A$2.6-million through a share placement priced at 7.5c a share.

The company on Friday said that it would place more than 35.3-million shares to institutional investors, to fund its working capital requirements at its Tenas metallurgical coal project, in Canada.

A March definitive feasibility study found that Tenas could support an annual saleable coal production of 750 000 t/y over a 22-year mine life, generating average annual revenues of A$121.3-million.

The study estimated that a capital injection of $54.3-million would be required to construct the project, with pay-back estimated at 2.5 years.