TIG, a pure play coking coal development-company with landholding in Russia’s Bering Basin, is courting the investment in order to fund technical work and further drilling for its Amaam project.

The project incorporates two coking coal sub-basins held under separate title – the Amaam tenement (40%, earning 80%) 406 million tonne inferred resource and the Amaam North tenement (80%) recently acquired, pending drilling.

The company said the project held coal with exceptional coking properties and had a sheltered, deepwater port designed to provide year-round shipping.

The placement incorporates a 5% discount to the volume-weighted average price over the five trading days up to, and including, July 6, 2012.

The company said all net proceeds of the offer would be applied to the funding of drilling and technical studies at the Amaam project and also to fund corporate costs and working capital to the end of June 2013, by which time, Amaam’s prefeasibility study was expected to have been completed and additional results would have been made available.

TIG said it believed the completion of the PFS at the end of 2012 would increase the value of the Amaam project and would subsequently provide the company with a larger scope of alternatives for securing funding to progress the bankable feasibility study, planned for completion at the end of 2013.

TIG said it expected to confirm the outcome of the placement prior to trading on Wednesday, July 11, 2012.

Settlement of the placement, for shares other than conditional shares, is expected on Monday, July 16, with allotment and commencement of trading for the new shares on Tuesday, July 17.

The Amaam tenement comprises a multi-seam, moderately dipping deposit within a synclinal structure where the host formation comprises four to five seam packages of mineable thickness.

The cumulative coal thickness of packages ranges from 6m to 25m over a host formation of 80m to 130m.

Mapping of the deposit has identified multiple coal exposures, 30 of which are greater than 2m true seam thickness.

Results of further studies into the area have suggested the presence of an adjacent coal host horizon not present at Amaam with lower Chukchi formation and thick seams of 6-10m.

Preliminary coal quality work also suggested the Amaam product would be an attractive blend coal for the Asian steel market.

TIG said the Amaam scoping study confirmed the potential for a large-scale open pit mining operation with more than 5 million tonnes per annum of premium coking coal and a fully integrated mine, wash plant, 30km rail and greenfield port.

The company said it expected to be well positioned to further consolidate its position.