PERTH (miningweekly.com) – ASX-listed Allegiance Coal has raised an preliminary A$15-million within the institutional element of its A$33.6-million entitlement supply launched earlier this month.
The corporate on October 5 introduced an eight-for-five pro-rata renounceable entitlement, priced a 5c a share, to boost A$33.6-million to fund the refurbishment of the Black Warrior and New Elk mines, in British Columbia.
The supply worth of 5c a share represents a 47.3% low cost to Allegiance’s five-day quantity weighted common share worth of 9.5c. The retail element of the entitlement supply will open on October 3 and is predicted to shut on October 25.
The capital elevate adopted Allegiance in August securing a $40-million mortgage and an as much as 40 000-t-a-month offtake settlement with New York-based financier Marco.
Allegiance in July launched a strategic evaluation of its portfolio administration and ongoing liquidity necessities, given the efficiency of its working mines within the US, saying the corporate had been unable to efficiently ramp up manufacturing to earlier expectations at its two working mines, and had been unable to safe medium time period tools financing at each Black Warrior and New Elk, which has pushed lower-than-expected efficiency.
The outcomes of the strategic evaluation will see the corporate proceed to optimise efficiency at each mines concurrently, and to scale back expenditure on Tenas, to simplify managing the environmental evaluation evaluation course of, and to delay the unbiased feasibility examine on the Brief Creek underground mine, till the acquisition of the Brief Creek asset is full.