- Atrum Coal (ATU) will be raising $22 million to help progress the Elan Hard Coking Coal Project in Alberta, Canada
- Approximately 95.7 million fully paid shares will be issued to existing shareholders and new investors at a price of 23 cents per share
- The money raised will primarily be used towards pre-feasibility study activities at the Elan Project
- This is expected to be completed by the middle of 2021
- Atrum Coal has ended the day 10.7 per cent in the red with shares trading for 25 cents each
Atrum Coal (ATU) will be raising $22 million to help progress the Elan Hard Coking Coal Project in Alberta, Canada.
Approximately 95.7 million new fully paid shares will be issued to existing shareholders and new investors at a price of 23 cents per share.
This price represents a 17.9 per cent discount to Atrum Coal’s last closing price of 28 cents on April 17 and a two per cent discount to the five-day volume weighted average price of 23.47 cents.
The placement will be taking part in two phases with phase one raising approximately $15.3 million through the issue of 66.7 million new shares.
The shares are expected to be allocated on April 30.
Phase two will raise $6.7 million through the issue of 29 million new shares, however, this is subject to shareholder approval which will be sought after at the general meeting in June.
These shares are expected to be allocated towards the end of June.
Atrum Coal’s major shareholder Tim Roberts, has subscribed for approximately $7 million of the placement which will increase his shareholding to 19.9 per cent.
The money raised will primarily be used towards pre-feasibility study (PFS) activities at the Elan Project and a coal quality drilling program to expand and upgrade the existing resource classification.
However, due to COVID-19 restrictions, these activities have temporarily hit the breaks and work is currently limited to desktop studies.
Atrum Coal will continue to monitor the situation and keep the market informed if any changes arise.
“Following the recent completion of the successful scoping study and the Elan Project, this equity raising allows us to confidently plan for the key PFS workstreams needing to be undertaken over the coming year,” Managing Director and CEO Max Wang commented.
“We are now well-funded to undertake all activities required for completion of a PFS on Elan and submission of a detailed permitting application for development of this world-class hard coking coal asset,” he added.
Atrum Coal has ended the day 10.7 per cent in the red with shares trading for 25 cents each in a $133.8 million market cap.