Jakeman, who holds 3,382,929 shares and 2 million options in Carabella has made a paper profit of $A1.63 million on his undiluted stake in the company, which is on the fast track to coking coal production by either longwall or open cut mining methods.
Carabella, whose $12 million IPO closed early and oversubscribed with strong institutional support, has pegged rare available premium coking coal tenements adjacent to BMA’s Goonyella-Riverside and Broadmeadows mines.
“Carabella has already uncovered a significant coking coal resource close to existing infrastructure at a time when world demand for coal in general and coking coal in particular is forecast to grow dramatically over the medium term,” Jakeman said.
“Carabella has the right resources located in the right place. I believe that the company is ideally positioned to take advantage of a strong global coal market.
“Following completion of the listing, we are looking forward to continuing our exploration program and building value for shareholders.”
Jakeman, a veteran of the Bowen Basin, has worked with a number of other major global coal companies including BHP, Shell Coal and Rio Tinto.
The IPO comprised an offer of 30 million shares at an issue price of 40c. Its shares came on at 75c this morning.
Jakeman will be joined by David Begley, who will take on the role of executive manager – organisation, responsible for overseeing the company’s organisational systems and performance as it moves from exploration to development.
Begley has spent the last 20 years as a business improvement management consultant to the mining industry, and has consulted to some of the world’s largest resources companies, including Anglo Coal Australia, BHP, Rio Tinto, Xstrata, Barrick Gold, Lihir Gold and Vale.
Carabella chairman Michael Addison told ILN the company’s tenements offered investors some of the best coking coal development opportunities in Queensland that had not been tied up by the major companies.
“The senior management appointments will support the company’s existing management team to drive the continued exploration and development of the company’s assets toward production,” he said.
“The appointment of someone of David’s calibre is a testament to the quality of Carabella’s assets and its future prospects.”
Carabella recently completed an initial drilling program at the Mabbin Creek coking coal tenement in the Northern Bowen Basin.
This identified an initial JORC resource of 91.7 million tonnes of coking coal at its Grosvenor West prospect.
The company announced today that preliminary testing of three core samples taken from boreholes drilled at Grosvenor West has confirmed the coals intersected are coking coals from the Goonyella lower seam in the Moranbah Coal Measures.
Mabbin Creek is located close to existing road, rail and power infrastructure, and is adjacent to a number of world class coking coal mines.
The majority of funds raised through the offer will be used to fund the company’s exploration program over the next two years.
The company intends to place immediate priority on the continued development of Grosvenor West, as well as investigating other exploration target areas at Mabbin Creek.
“We remain excited about the development of Grosvenor West and the potential of the other target areas on Mabbin Creek to make a good prospect even better in 2011,” Addison said.
