Bowen Coking Coal (ASX:BCB) receives commitments to raise $41.5 million for Burton Lenton acquisition

• Bowen Coking Coal (BCB) receives commitments to raise $41.5 million through a placement to fund its acquisition of the Burton Lenton project
• It will also be partly used for restart costs at the project, working capital, and costs of the offer.
• The company will issue about 207.4 million new shares at a price of 20 cents, representing a 13 per cent discount to the last traded price
• The remaining funds required for the recommissioning of Burton will be sourced under the debt process currently being facilitated by Grant Samuel
• Shares are trading 10.9 per cent lower at 20.5 cents each

Bowen Coking Coal (BCB) has received commitments to raise $41.5 million through a placement to fund its acquisition of the Burton Lenton project.

The company will issue about 207.4 million new shares at a price of 20 cents per share.

This represents a 13 per cent discount to the last traded price and a 10.7 per cent discount to the traded day volume-weighted average price.

The shares are not subject to shareholder approval and will be listed under the company’s placement capacity.

Funds will be applied to the acquisition of a 90 per cent interest in the Burton Mine and Lenton project.

It will also be partly used for restart costs at the project, working capital, and costs of the offer.

The remaining funds required for the recommissioning of Burton will be sourced under the debt process currently being facilitated by Grant Samuel.

The new shares will be issued in a week.

Managing Director Gerhard Redelinghuys is pleased with the placement.

“We are delighted with the support for the placement and welcome a number of new highly credentialed investors to the register,” he said.

“The hard work of the Bowen team has paid off with the acquisition of Burton cementing our premium portfolio of near-term production assets.

“We have secured a number of highly synergistic assets, rapidly bringing our projects into production to leverage favourable coal prices.”

Shares were trading 8.7 per cent lower at 21 cents each at 1:18 pm AEDT.