Closes A$3M Discretionary Placement
Sydney, Sep 3, 2015 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to announce the closure of a A$3m institutional investor discretionary placement on the same terms as the recent Entitlement Issue. The discretionary placement was made pursuant to the prospectus dated 3 August 2015, as supplemented by the supplementary prospectus dated 25 August 2015.
HIGHLIGHTS
- Closure of a A$3m discretionary placement to existing and new institutional investors
- Bob Bell and John Wasik have been appointed to the Board as non-executive directors
The funds raised pursuant to the discretionary placement will be used for general working capital.
VP Finance, Theo Renard, commented:
"We've had strong support for our recent Entitlement Issue and now for the A$3m discretionary placement. Existing and new institutional investors participated in discretionary placement.
"The focus of the Company is now on completing the proposed sell-down of part of the Groundhog North Mining Complex with the aim to raise significant funds that will facilitate development of a world-class anthracite resource, in a low sovereign risk country, 150km direct distance from a deepwater port. We have already had strong initial interest from various steel mills, trading groups and industrial anthracite users. The Company's VP Business Development and Marketing, Peter Doyle, is currently meeting with potential customers and investors and we will update the market on the proposed sell-down process over the coming months."
Appointment of Non-Executive Directors
With the completion of the recent Entitlement Issue and discretionary placement, the Company is pleased to announce that Bob Bell and John Wasik have been appointed to the Board as nonexecutive directors. In addition to their other duties, both will assist the existing directors and management with the sell-down process.
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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