THE BOURSE WHISPERER: New Age Exploration has completed a private placement of ordinary shares raising $4 million.
The placement was taken up by an institutional investor and a sophisticated investor and will be carried out through the issue of just over 33.3 million ordinary shares at an issue price of 12 cents per share.
New Age said it would be using the funds to advance its Colombian coking and thermal coal projects.
This will include the acceleration of early production of coking coal from the Subachoque project that will pay for costs of the placement and for working capital purposes.
The two parties to take up the placement were Resource Capital Funds, a group of mining-focused private equity funds and Chee Siew Yaw, a sophisticated investor, who is a successful Singaporean businessman and investor.
“We are pleased to have been able to secure this funding in the current volatile markets,” New Age Exploration managing director Gary Fietz said in the company’s announcement to the Australian Securities Exchange.
“The fact that we were able to raise this funding at a premium to our current share price illustrates the quality of our Colombian coal projects and our development strategy.
“We are especially pleased to have the support of each of RCF and Mr Yaw and look forward to their long term support as key investors in our company.
“The funds raised will be used to advance our exploration and development programs on our Colombian projects, in particular to accelerate bringing the Subachoque project into early production.”
The placement will be undertaken in two tranches.
Tranche one involves the issue of 12 million ordinary shares under the company’s existing placement capacity with the balance of 21.3 million outstanding shares being issued subject to shareholder approval at the company’s upcoming Annual General Meeting, expected by early November.
Binding agreements for the participants have now been signed and New Age expects to receive 100% of the funds by the end of September.