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.