MARKETS

Coalspur taps northern investors

COALSPUR will embark on a quick $A80 million capital raising spree to finance the acquisition of ...

Blair Price
Coalspur taps northern investors

The company appointed BMO Capital Markets and JP Morgan as lead joint bookrunners for a share placement to raise $80 million from “strategic” and institutional investors in North America and Europe.

A share placement is set to raise $44 million before costs, through the issue of 55 million ordinary Coalspur shares at 80c each.

An additional $36 million before costs will be raised through a private placement of convertible notes which can be converted into 45 million ordinary shares at 80c each.

Coalspur said the largest participant will be Highland Park Group.

Shareholder approval is required and Coalspur plans to announce more details about the transaction for new coal leases shortly.

The settlement of the placements are expected to occur by mid-October.

Coalspur managing director Gene Wusaty said the capital raising will not only secure the acquisition of new coal leases, but will also put the company in a position to “rapidly develop the Vista coal project”

The company’s Vista coal project already holds more than 905 million tonnes of resources with 812.6Mt in either the measured or indicated category.

Before acquiring additional leases over the past few months, the project was previously called the Hinton project.

The open cut Hinton project was aiming for 7.4 million tonnes per annum of thermal coal production to export 4Mt of saleable coal over a mine life of 14 years.

Coalspur shares are up 5.5c to 98c this morning.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production