Cokal carries out private placement to raise A$8.5m

ASX-listed coal firm Cokal Ltd is raising A$8.5 million from a private placement of shares to Passport Capital LLC, a U.S.-based investment firm.

Under the placement deal, Cokal will issue 17,000,000 shares to Passport at A$0.5 a share and 8,500,000 unlisted options exercisable at A$1 each within 18 months, according to a media statement.

The statement added that the placement funds are expected to be received and the placement shares and options issued next week.

Peter Lynch, Cokal executive chairman, said the funds would be used to replenish the company's working capital following project acquisitions in Central Kalimantan in September.

"This will help us expand and accelerate our exploration activities," Lynch said in the statement.

"Cokal is continuing to explore its Bumi Barito Mineral (BBM) project. The exploration program has continued to confirm the presence of high quality metallurgical coal." (alex)