Newland Resources has announced plans for a $6.1 million capital raising to fund the acquisition of coal exploration tenements in the Bowen Basin in Queensland and repay a $700,000 loan.
Newland Resources has announced plans for a $6.1 million capital raising to fund the acquisition of coal exploration tenements in the Bowen Basin in Queensland and repay a $700,000 loan.
The capital raising consists of a placement of 265 million fully paid ordinary shares to institutional and sophisticated clients of Argonaut.
In a statement to the Australian Securities Exchange, the board of Newland said that it had received an irrevocable offer to subscribers in connection with the placement at an issue price of 23 cents per share.
As a result of the oversubscription the company's board increased the placement from 200 million shares on October 8 by 65 million shares.
The 65 million shares will be issued pursuant to the company's 15 per cent placement capacity.
"We are pleased with the strong level of support for the Placement from institutional and sophisticated investors," said Newland's chairman Tim Sugden.
"Proceeds from this capital raising will enable the Company to pursue its coal exploration initiatives and opportunities that we believe will underpin long term growth for Newland's Shareholders."
See company statement below:
Newland Resources Limited (ASX:NRL) (Newland) announces a capital raising to raise gross proceeds of $6.095 million (Capital Raising), consisting of a Placement of a total of 265 million fully paid ordinary shares (Shares) marketed to Institutional and Sophisticated Clients of Argonaut (the Placement).
The Board of Newland is pleased to advise that it has received irrevocable offers to subscribe for Shares in connection with the Placement at an issue price of $0.023 per Share. The Placement was heavily oversubscribed resulting in the Board of Newland electing to increase the Placement from the 200 million shares approved by Shareholders on Friday, 8 October 2010 by 65 million shares to 265 million shares. The 65 million shares will be issued pursuant to the Company's 15% placement capacity.
Newland, an Australian based coal exploration company, is acquiring two granted coal exploration tenements (EPCs) and four coal exploration tenement applications (EPCAs) covering approximately 1,900 square kilometres in the world-class Bowen Basin region of Central Queensland from a privately owned resources group. The tenement portfolio is located in the Emerald - Blackwater - Rolleston region of the Bowen Basin with two key tenements situated amongst several existing coking and export thermal coal mining operations. These existing mining operations evidence the significant potential of the acquired projects which have easy access to existing rail and port infrastructure (see Figure 1).
The acquisition provides Newland with an exciting development focus as a significant participant in the Bowen Basin coal province.
The use of the proceeds of the Capital Raising will be to:
- fund the completion of the acquisition of the coal exploration tenements,
- repay the $700K loan facility,
- enable the rapid commencement of exploration programs on the granted tenements to identify significant coking and thermal coal resources accessible by surface mining methods; and
- provide general working capital.
Newland's Chairman, Dr Tim Sugden, said "We are pleased with the strong level of support for the Placement from institutional and sophisticated investors. Proceeds from this capital raising will enable the Company to pursue its coal exploration initiatives and opportunities that we believe will underpin long term growth for Newland's Shareholders."
