Australian coal mining junior, Malabar Coal, is aiming to raise AUS$2 million to fund its Spur Hill underground metallurgical coal project, according to a recent company announcement.
The fund raising will occur through a one-for-eight entitlement offer to existing shareholders. Seven existing shareholders, including four current company directors, will underwrite the offer and take up their entitlements.
Including the underwriters, Malabar shareholders holding 71.98% of the shares in the company have agreed to take up their respective entitlements. The company expects around 20 million new shares will be issues as part of the offer.
The company has also announced its intention to delist from the Australian Stock Exchange (ASX).
The decision comes on the back of the company’s limited liquidity, a lack of interest from brokers – a situation the company blames on the current conditions in the coal industry – and the cost of maintaining the listing. The delisting is subject to shareholder approval.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/01092016/malabar-to-raise-cash-and-delist-from-asx-2016-2341/