Atrum Coal Raised A$20 Million To Accelerate Drilling And Evaluation Activities At Its Elan Project

Atrum Coal Limited

Coal producer, Atrum Coal Limited (ASX: ATU) has taken a major step in accelerating the drilling and evaluation activities at its Elan Hard Coking Coal Project by successfully raising A$20 Million via two-tranche placement.

In an announcement made on 8 March 2019, the company informed that it has successfully raised around A$20.0 million of new equity funds by issuing 114.3 million new fully paid ordinary shares in a two-tranche placement at an issue price of A$0.175 per share (Placement). Following the release of this news, the share of the company increased by 4.762% in the intraday trade as on 8 February 2019. 

The placement issue price of A$0.175 per fully paid ordinary share represents a discount of 16.7% to Atrum’s close price of A$0.21 on 5 March 2019 and a discount of 4.2% to Atrum’s 30-day Volume Weighted Average Price (VWAP) of $0.1828.

The Tranche 1 of the Placement will raise around A$14.6 million through the issue of around 83.2 million new shares. The settlement of Tranche 1 of the Placement is expected to occur around 18 March 2019.

The Tranche 2 of the Placement will raise around A$5.4 million through the issue of approximately 31.1 million new shares, subject to shareholder approval to be sought at an Atrum General Meeting expected to be held around 15 April 2019. The Sydney-based Regal Funds Management has subscribed for around 57.15 million shares (approx. A$10 million) of the Placement.

As per the company’s announcement, the placement was well supported with strong demand received from institutional and sophisticated investors based in Australia and internationally.

While commenting on the placement, the company’s Managing Director, Max Wang told that the management of the company is highly encouraged by the strong level of demand received for this equity raising. The management believes that this strong demand highlights a rapidly growing appreciation for the underlying value potential of the company’s flagship Elan Hard Coking Coal Project in Alberta.

He further informed that the company is now well funded to accelerate its drilling and evaluation activities across multiple project areas at Elan, with a view to rapidly progressing through key feasibility work and towards formal permitting application for Elan South.

The proceeds of the placement will be primarily applied towards accelerated drilling and evaluation activities at Atrum’s Elan Hard Coking Coal Project which consists of several large hard coking coal deposition areas.  The company has already started the planning for the 2019 field program with the next round of drilling at Elan expected to commence during the June quarter.

Meanwhile, in the last six months, the share price of the company increased by 156.10% as on 5 March 2019. ATU’s shares traded at $0.220 with a market capitalization of circa $75.83 million as on 8 March 2019.  It has 52 weeks high of $0.265 and 52 weeks low of 0.070 with an average volume of ~765,391.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.