Cokal completes fund raising for BBM project
Monday, July 17 2017 - 03:26 AM WIB
ASX-listed coking coal company Cokal Limited announced Monday successful completion of A$700,000 capital raising by way of a private placement to sophisticated and professional investors.
The company said that the funds raised will be used for working capital as their flagship BBM Coal project in Indonesia?s Central Kalimantan Province advances towards initial coal production, which is expected to be achieved in the third quarter of 2017.
Cokal anticipates that the capital raised will be the final requirement for funding prior to initial production from the BBM Anak area within the BBM Coal project.
The Placement consists of 19,444,445 fully paid new ordinary shares to be issued at $0.036 per share to raise $700,000 (before issue costs).
The lacement price of $0.036 per share represents a 10 percent discount to Cokal?s closing price on July 12, 2017, the last day Cokal shares traded on the ASX prior to announcement of the capital raising. The placement will fall within Cokal?s existing placement capacity and therefore Cokal shareholders are not required to vote.
On June 12, the first of three LCT (Landing Craft Transport) barges carrying mining equipment arrived at Krajan (basecamp for BBM). Dump trucks, excavators and dozers were unloaded and immediately commenced construction of the centreline for the haul road from the barge-loading port to the stockpile area.
This initial construction was completed during this weekend (July 15 and 16) and the equipment is now clearing the centreline from the stockpile area to the mine site and the Krajan basecamp.
All land acquisitions required to implement production at BBM Anak have been completed.
Cokal said it has all of the key components required for the construction of, and production from, the BBM Anak coal mine as well as the approvals for the logistics chain to deliver the coal to domestic customers.
Cokal also said it has received interest from numerous customers who are seeking to purchase this particular coal product. Discussions are continuing and once contracts are signed, Cokal will announce the results.
Editing by Reiner Simanjuntak