PERTH (miningweekly.com) – Tigers Realm Coal has announced plans to raise A$43.5-million through an accelerated renounceable rights offer to fund the construction and commissioning of its coal handling and preparation plant (CHPP) in Russia.
The ASX-listed company on Wednesday said that it would issue more than 5.4-billion new shares, at a price of 0.8c each, with the offer price representing a 33.3% discount to its last closing price and a 37% discount to its 30-day volume weighted average share price.
The entitlement offer is fully underwritten by CLSA Australia, and Tigers Realm’s largest shareholder Dr Bruce Gray has agreed to fully sub-underwrite the offer.
Gray currently holds a 39.42% stake in Tigers Realm, and if he is fully allocated all of the new shares under the entitlement offer, his share in the company would increase to 64.7%, giving him the ability to pass maters requiring shareholder approval by ordinary resolution.
The company is working towards becoming a ten-million tonne a year coking coal producer, and is currently developing its Stage 1 operation at Amaam, which could see the production of up to 1.6-million tonnes a year of coking coal.