20/07/2015 - 12:56

Prairie attracts $15m-plus investment

20/07/2015 - 12:56

Bookmark

Upgrade your subscription to use this feature.

Local company Prairie Mining has raised $15 million from UK-based CD Capital for the development of its Lublin coal project, with the potential for the private equity fund to invest a further $68 million.

Prairie attracts $15m-plus investment

Local company Prairie Mining has raised $15 million from UK-based CD Capital for the development of its Lublin coal project, with the potential for the private equity fund to invest a further $68 million.

Under the terms of the deal, Prairie will issue $15 million worth of convertible loan notes to CD Capital, which will be exchangeable for ordinary shares at 33.5 cents each, and will grant the fund $13 million worth of unlisted options, exercisable at 60 cents each.

CD Capital will also hold a priority right to invest a further $55 million in any future funding conducted by Prairie.

The exchange of loan notes will give CD Capital about 30 per cent ownership in Prairie, with the exercisable options to provide an additional 15 per cent stake.

CD Capital will also have the right to appoint two directors to Prairie’s board.

The proceeds from the transaction will be used by Prairie to complete a definitive feasibility study for the Lublin project in Poland, and will fund all required work programs to bring the company to a stage where it can make a development decision.

Prairie chief executive Ben Stoikovich said CD Capital’s investment in the project was testament to its potential, and provided the company with a solid base to progress towards development.

CD Capital founder Carmel Daniele said the investment was an exciting opportunity to expand and develop the Lublin project into a world-class resource.

“It is a high quality project where we can achieve our investment mandate through a strategic partnership of our deep industry expertise with the experienced and committed Prairie management team,” Ms Daniele said.

Shares in Prairie were 2.9 per cent higher to 34.5 cents each at 12:50pm.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options