- Bowen Coking Coal (BCB) taps investors for $50 million via a $40 million placement and a $10 million share purchase plan
- The funds will go toward developing BCB’s Burton Complex in Queensland, including the Ellensfield South coal pit, with first coal expected in September
- The placement is also expected to extend the mine life of the Ellensfield pit until 2027
- BCB shares closed 22.7 per cent lower at 17 cents at market close
Bowen Coking Coal (BCB) has tapped investors for $50 million to fund the development of the Ellensfield South pit, forming part of its Burton Complex in Queensland.
The capital raising includes the completion of a $40 million placement at 17 cents apiece, as well as a fully underwritten $10 million share purchase plan. The $40 million institutional component of the raising was offered at a 23 per cent discount to BCB’s trading price, before the company entered a halt on June 2.
The company announced the funds would speed up production at its Burton Complex, having recently faced third-party logistical delays causing additional expenditure.
First coal from Ellensfield South is expected in September and the placement is set to boost the company’s overall coal export volumes.
This comes after the company also faced major setbacks from severe storms in Queensland’s north which significantly impacted the coal and production efforts.
The funds raised will also go toward extending the mine life of the pit until 2027, the reconnection of permanent electricity and additional working capital purposes.
BCB shares closed 22.7 per cent lower at 17 cents at market close.