Celsius Coal has announced a $10 million financing arrangement with Singapore-based Blumont to fund its exploration and development programs in the Kyrgyz Republic.
Perth-based Celsius said $5 million would be made available immediately through a placement priced at 2.2 cents per share, while an additional $5 million would be sourced through a convertible notes issue in the second half of the year.
The notes will be convertible at 2.5 to 3 cents per share and carry 12.5 per cent annual interest.
Celsius also said it had entered a strategic alliance with Blumont, which has a market capitalisation of around $S700 million.
“I’m happy that our 2013 program is fully funded with this strategic alliance,” managing director Grant Thomas said.
“We are already planning an accelerated physical exploration program to commence this northern hemisphere spring.
“We hope the prospectivity of these projects becomes clear in the minds of investors once our maiden JORC Code compliant resource is released in March.”
Celsius’ flagship asset is its 80 per cent owned Uzgen Basin coking coal project, which covers an established Soviet-era coking coal resource.
The company’s shares were down 8 per cent on the ASX today, trading at 2.3 cents.