JOHANNESBURG (miningweekly.com) – Aim- and ASX-listed Beacon Hill Resources on Monday announced its intention to raise between $15-million and $25-million through the placing of new ordinary shares in the company at 25p apiece.
The shares would be issued in two tranches and the funds would be used to fund the rail sidings required as part of the company’s plan to transport coking coal from its Minas Moatize mine, in Mozambique’s Tete province, to the Port of Beira.
The balance of the proceeds were to be used for the upgrade of the wash plant at Minas Moatize, related rolling stock and the company’s working capital requirements.
“The placing, which has received strong institutional demand, to date, will strengthen the company's balance sheet and enable us to complete important rail infrastructure upgrades, commence the Phase 2B and 2C wash plant upgrades and leave sufficient working capital for our rail operations.
“In addition, and most significantly, the funding will be sufficient to see the Minas Moatize operation enter full-scale production of coking coal,” Beacon Hill chairperson Justin Farr-Jones said in a statement to shareholders.
Meanwhile, Beacon Hill continued its engagements with respect to a secured debt facility for capital expenditure, ongoing working capital funding and to refinance the senior secured $10-million debt facility with independent energy trader Vitol Coal.
The key milestones to concluding the facility included the demonstration of the upgraded wash plant and the receipt of a rail allocation, which was recently attained by the company.