Prairie Mining Ltd has agreed terms for further investment from its cornerstone investor CD Capital Natural Resources Fund III LP (CD Capital) subject to shareholder approval and completion of final formal documentation.
The investment will take the form of a private placement by PDZ Holdings Pty Ltd (PDZ Holdings), a wholly-owned subsidiary of Prairie that indirectly holds the Jan Karski mine and the Debiensko hard coking coal project, of non-redeemable, non-interest bearing convertible loan notes for an aggregate principal amount of AUS$2 million. The notes can be exchanged into ordinary shares of the company at AUS$0.46 per share representing the price of the recent successful placing of ordinary shares to high quality UK institutional investors completed in April 2017 (Institutional Placement).
The proceeds from CD Capital’s investment, combined with the net proceeds from the Institutional Placement, will enable Prairie to further accelerate the development of its Debiensko hard coking coal project and advance pre-construction engineering works at its Jan Karski mine.
Prairie and CD Capital will continue working together in partnership to de-risk and enhance the significant value of Prairie’s coking coal assets as they progress rapidly through the next stages of project development.
Prairie’s CEO Ben Stoikovich commented: “Following on from our recent successful placing to a number of high-quality UK-based institutional investors, CD Capital’s increased investment in Prairie reaffirms the global significance of our Tier One coking coal assets in Poland. We are delighted with the continued support from our cornerstone investor who shares Prairie’s vision to become Europe’s next strategic coking coal supplier.”
CD Capital’s Founder & CIO Carmel Daniele said: “We are excited about the ongoing material achievements in the development of Prairie’s world class coking coal projects. We look forward to continuing to work in partnership with Prairie’s experienced management team as Prairie continues to develop Jan Karski and Debiensko into two of the lowest cost coking coal mines in the heart of Europe’s steel industry.”
Read the article online at: https://www.globalminingreview.com/finance-business/28042017/prairie-agrees-additional-funding-for-tier-one-premium-coal-projects/