PERTH (miningweekly.com) – Coal miner Bowen Coking Coal has completed a A$40-million share placement plan and unveiled a fully underwritten A$10-million share purchase plan (SPP), to fund work at its Burton project.
The company on Tuesday announced that it would issue more than 235.2-million shares, at a price of 17c each to raise the A$40-million.
The first 209.8-million of these shares will be placed under the company’s existing placement capacity, raising an initial A$35.7-million, with the balance to be issued subject to shareholder approval at a meeting planned for July 18.
Under the SPP, eligible shareholders will be allowed to subscribe for up to A$30 000 of new shares in the company, also at the same price. The SPP will open on June 9 and close on June 23.
Bowen told shareholders on Tuesday that the capital raising would allow the company to continue its growth trajectory and the development of the Ellensfield South pit in the face of third-party logistical delays that have impacted near term cash flows. First coal from Ellensfield South was expected in September and at steady state this would substantially increase Bowen’s coking coal export volumes at the Burton Complex, with this pit providing additional low-cost, high-yielding coking product.
Funds raised from the placement will primarily be applied to Burton capital expenditure, including completing the Ellensfield South box cut, haul road upgrade, infrastructure and working capital. Capital expenditure for other significant items is being funded from operating cash flow and existing financing arrangements.