The funds will be used to upgrade, expand and develop the Lublin Coal Project in southern Poland.

Along with the CD funds comes CD Capital founder and fund manager Carmel Daniele and CD Capital senior analyst Emil Morfett, who will be taking board positions with Prairie.

The funds will come in three tranches.

The first is a private placement by PDZ Holdings, a wholly owned subsidiary of Prairie that indirectly holds the Lublin Coal Project, of non-interest bearing convertible notes with an aggregate principal amount of $A15 million to CD Capital. Those notes will be exchangeable for ordinary Prairie shares at 33.5c apiece.

The second is the grant of unlisted options in Prairie with an exercise price of 60c per option for another $13 million once exercised.

The third is a priority right for CD Capital to invest another $55 million in any future funding conducted by Prairie.

The first $15 million will fund the derisking of Lublin towards a construction decision.

The completion of the transaction will fund all works up to a definitive mine development decision at Lublin. That includes the completion of a definitive feasibility study and the necessary permitting.

Prairie CEO Ben Stoikovich said CD’s investment in the Lublin Coal Project was a testament to its outstanding fundamentals and potential.