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- Cokal (CKA) launches a $16 million placement to accelerate coal production at its flagship Bumi Barito Mineral (BBM) project in Indonesia
- The funds will go towards enhancing the development of transport infrastructure to support BBM’s ramp-up in production
- The raise was strongly supported by M Resources’ Matthew Latimore, who contributed $5 million, as well as other domestic and international institutional investors
- Cokal says the placement will include the issue of 100 million new shares at 16 cents each — a 13.5 per cent discount to its last trade of 18.5 cents
- Shares in CKA are down 8.11 per cent, trading at 17 cents at 3:44 pm AEDT
Cokal (CKA) has launched a $16 million placement to accelerate coal production at its flagship Bumi Barito Mineral (BBM) project in Indonesia.
The funding will go towards the development of the transport infrastructure required to support BBM’s aimed ramp-up of saleable coal production to two million tonnes per annum and beyond.
Cokal will issue 100 million new shares at 16 cents to raise the funds, representing a 13.5 per cent discount to its last closing price of 18.5 cents.
The company said the placement was strongly supported by M Resources’ Matthew Latimore, who contributed $5 million, as well as other domestic and international institutional investors.
“Collectively, we believe that this provides a strong endorsement for Cokal’s strategy in advancing its now-producing metallurgical coal assets,” Cokal CEO Karan Bangur and Chairman Domenic Martino jointly said.
Mr Bangur and Mr Martino added that the road ahead is exciting for Cokal investors.
“With production having commenced in October 2022, initial coal sales expected very soon, logistics chains being optimised and production ramping up in a buoyant coal price environment, we believe Cokal is very well positioned to drive considerable shareholder value in both the short and longer term,” they said.
The proceeds from the placement will also go towards building a state-of-the-art fully-automated conveyor loading and unloading system at Batu Tuhup jetty, as well as completing drilling and resource definition work at its nearby TBAR asset.
Cokal said a focus on developing the system at Batu Tuhup jetty would help ramp up production volumes.
Shares in CKA were down 8.11 per cent and trading at 17 cents at 3:44 pm AEDT.
