- Tigers Realm Coal (TIG) is aiming to raise $43.5 million for the Coal Handling and Preparation Plant (CHPP) at its Amaam coking coal project in Russia
- Specifically, the funds will be allocated towards design works, civil works, equipment supply and contingency
- The money will be raised through a fully underwritten one-for-1.4 entitlement offer
- Over 5.4 billion shares will be issued at 0.8 cents – representing a 33.3 per cent discount to the last closing price
- TIG’s largest shareholder, Dr Bruce Gray, has agreed to fully sub-underwrite the offer, but how much he gets will depend on how many shares eligible shareholders purchase
- TIG remains in a trading halt and shares last traded at 1.2 cents on December 15
Tigers Realm Coal (TIG) is looking to raise $43.5 million for the Coal Handling and Preparation Plant (CHPP).
The company is aiming to raise the funds through a fully underwritten entitlement offer, by which it will offer shareholders one new share for every 1.4 existing TIG shares held.
Shares will be issued at 0.8 cents each – representing a 33.3 per cent discount to the last closing price on December 15.
TIG will issue 5,438,997,820 new shares, which is around 71.4 per cent of the current TIF shares on issue.
Additionally, TIG’s largest shareholder, Dr Bruce Gray, has agreed to fully sub-underwrite the offer, but how much he gets will all depend on how many shares eligible shareholders purchase.
Bruce currently has a 39.42 per cent interest in the company and if he is allocated every share in the entitlement offer, his interest would increase to 64.7 per cent.
Majority of the proceeds will be spent on the development of the CHPP for TIG’s Amaam coking coal project in Russia, this includes design works, civil works, equipment supply and contingency.
CHPP is a facility that washes soil and rock off coal before crushing it into grade-size chunks. The coal is then prepared for the transport market. Essentially, the more waste material that can be removed from the coal, the greater the market value is.
TIG remains in a trading halt and shares last traded at 1.2 cents each on December 15.