The issue price of $0.74 per share represented a 9.8% discount to the closing price of Stanmore shares at $0.82 per share on December 6, prior to the capital raising.

Stanmore said the placement was oversubscribed and received strong support from existing institutional shareholders as well as a number of new investors.

The proceeds of the placement will be spread throughout the company’s ongoing projects, including funding of a feasibility study at The Range, continuing exploration at other key project and initial stage funding of port and rail infrastructure commitments.

Stanmore managing director Nick Jorss said the proceeds of the capital raising would place the company in a strong position to focus on achieving key developments and milestones in 2012.

“The level of institutional support and interest in the company represents a strong vote of confidence in Stanmore Coal’s portfolio of assets and development plans,” Jorss said.

Stanmore plans to submit an environmental impact statement for The Range in 2012 and undertake a conceptual mining study for its Mackenzie project.

Stanmore remains on track to become a coal producer by 2015 via its flagship The Range project, which is targeting first coal production of 5 million tonnes per annum of saleable coking and thermal coal for 2015.

The open cut mine, located 27km southeast of the proposed Surat Basin rail line, will have a 26-year mine life.

The company’s Mackenzie project is also expected to be in operation by 2015 and is targeting 1-2Mtpa of coal.

The Bowen Basin-located project has a JORC-compliant indicated resource of 25.7Mt and is located near an existing railway line which connects to coal ports at Gladstone.

Stanmore has been allocated 7Mtpa priority capacity rights for Wiggins Island coal export terminal stage 2 as well as a 12Mtpa conditional agreement at Dudgeon Point coal terminal.