THE BOURSE WHISPERER: Mongolian coal explorer Draig Resources has had its shares re‐listed on the Australian Securities Exchange, following the completion of a capital raising and the acquisition of eight coal licences in Mongolia’s Ovorhangay and South Gobi Provinces.
Draig completed a $17 million capital raising via the issue of 34 million shares under priority and general share offers.
The company said it has used the funds to complete the purchase of eight prospective Mongolian coal licences through the acquisition of BDBL LLC, previously a subsidiary of Peabody‐Winsway.
Location of the Ovorhangay and South Gobi province licences, Mongolia. Source: Company announcement
Draig said it now has sufficient cash on hand to pay for its 2012 exploration program, further coal acquisitions and necessary working capital.
“We now have the financial capacity to move forward with the development of what we believe will be a very good quality coal project,” Draig Resources managing director Mark Earley said in the company’s announcement to the Australian Securities Exchange.
“We will continue drilling through the coming Mongolian winter months, with the aim of establishing a JORC compliant resource on the project early this year.”
Draig recently announced the commencement of a geophysical survey designed to identify the potential black coal extensions within the Teeg licence, located in the Ovorhangay Province.
The survey is currently underway, having been halted briefly for the Christmas/New Year period.
Draig said it expects the survey will assist it in identifying drilling targets for its 2012 exploration program, which it intends to commence immediately after the geophysics analysis work has been completed.