ASX-listed anthracite developer, Atrum Coal, has raised AUS$13.5 million in a share placement to institutional and sophisticated investors, the company said in a recent release.
The fund raising – originally proposed at AUS$10 million but increased due to “strong demand” – will support development of the Groundhog anthracite project in British Columbia, Canada, the company said. Planned activities to be funded by the placement include the deliver of bulk samples to potential customers and the further development of mining studies and permitting.
“We welcome the new investors that will join the register and thank those existing shareholders that have once again supported the company,” said Atrum’s Executive Chairman, Robert Bell.
The new funds will also provide working capital to allow for the start of anthracite exports from US anthracite producer, Atlantic Carbon Group, in which Atrum holds a 26.68% stake. “We are entering the seaborne market in an exciting time of rising coal and anthracite prices,” added Bell.
In addition to the capital raising, the company also announced that 24 million shares acquired by Argonaut Equity Partners from one of Atrum’s founders, Russell Moran, would be sold in a block trade to institutional and sophisticated investors.
Argonaut acquired the shares after a loan secured against them went sour, according to a report in The Australian. The Australian also reported that Argonaut has also taken control of 6 million shares owned by Atrum cofounder, Gino D’Anna, as part of settlement agreement on another bad loan.
Read the article online at: https://www.globalminingreview.com/finance-business/16122016/atrum-raises-aus135-million-in-share-placement/