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- Coking coal explorer Jameson Resources (JAL) has entered a two-day trading halt as it prepares to launch a capital raising plan
- The capital raise likely comes as no surprise to investors after Jameson revealed yesterday it had less than two financial quarters of operating cash in the bank
- As part of its June quarterly report, Jameson said it would look to raise some extra cash in the near future
- Over the June quarter, the company finished a bankable feasibility study for its Crown Mountain coking coal project in Canada
- Jameson said it is making steady progress towards landing environmental approvals and permissions to develop the project
- Shares in James Resources last traded for 16 cents each
Coking coal explorer Jameson Resources (JAL) has entered a two-day trading halt as it prepares to launch a capital raising plan.
The company warned shareholders it would attempt to raise some extra cash yesterday when it revealed it could only operate for less than two more financial quarters at June quarter spending levels.
The company’s financial report for the June 2020 quarter showed $2.6 million worth of cash in the bank after $1.58 million of cash outflows. Given Jameson is yet to start earning money, the upcoming capital raise is likely no surprise for investors.
Jameson owns two coal projects in British Columbia, Western Canada. At this point in time, all focus is on the Crown Mountain project in the Elk Valley Coal Field, while the Dunlevy project in northeast British Columbia is on the back-burner for future opportunities.
The company is making steady progress towards environmental approvals and permissions for the development of Crown Mountain, which means it is edging towards producing and then selling coking coal from the project.
In July, Jameson released a bankable feasibility study (BFS) for the project, outlining a pre-tax net present value (NPV) of US$376 million (roughly A$537 million) and an 36.4 per cent internal rate of return.
Jameson expects to be able to produce 1.7 million tonnes per annum of saleable coal over a 15-year mine life from Crown Mountain.
According to Jameson, the BFS reaffirms Crown Mountain as a compelling high-quality coking coal opportunity.
The company said yesterday it expects any attempt at future capital raising will be successful. With the details of the planned raise to be announced on or before Monday, July 20, shareholders could have the weekend to speculate.
Shares in Jameson last traded for 16 cents each. The company has a $40.88 million market cap.
