The company will issue 60.7 million new shares under the placement, which are expected to be allotted and to start trading around August 7.

The new shares will rank equally with existing shares, meaning they are eligible for the final dividend in time for the record date of September 18.

Whitehaven aims to raise further funds through retail investors at the same issue price of $3.05 per share.

The share purchase plan is available to shareholders with a registered Australian or New Zealand address as of August 4.

Eligible shareholders will be able to subscribe for up to $15,000 of shares.

Whitehaven said the proceeds of the share purchase plan would be used for working capital.

This week the coal producer flagged selling a stake of its Narrabri underground project to a “substantial overseas group”

Whitehaven said it was in advanced negotiations with the buyer and an offtake arrangement would be a major part of the deal.

Shares in Whitehaven are down 6c to $3.15 this morning.