Atrum Coal, a prospective Australian metallurgical coal explorer known for its project developments in Alberta and British Columbia, Canada, has secured $8 million from the first stage of investor funding for its Elan coking coal project near Calgary.
The raising puts the company in a good position to secure the remainder of the $12.6 million required to progress further at Elan.
The $8 million placement was raised via two tranches from Australian and overseas investors at 10 cents per share for 80 million shares in total; the remaining $4.6 million is to be raised via a one-for-five entitlement offer, also at 10 cents per share.
Of the 80 million shares, 30.5 million will be issued on or around March 27, with the remaining 49.5 million issued at some point in the near future, subject to shareholder approval.
Intended to be Atrum’s premier project upon completion, the Elan South deposit has a JORC 2012-complaint estimate of 7 million tonnes (Mt) indicated and 28Mt inferred resources, primarily shallow, hard coking coal.
Atrum plans to use the money to complete acquisition of the project and fund an aggressive exploration program at Elan South, which has an exploration target of 200Mt as identified by surveyors Tamplin Resources in September last year. The total project has a non-JORC exploration target of over 745Mt.
Other Atrum Coal projects in the works include Groundhog & Panorama, Naskeena and Bowron River, all of which are located in BC, Canada.