Atrum raises funds for Groundhog North

PERTH (miningweekly.com) – Coal junior Atrum Coal will raise A$13.5-million through a share placement to institutional and sophisticated investors.

The company on Friday reported that it will issue some 27-million shares, at a price of 50c each, to raise the funds.

The issue price represented an 8% discount to the company’s last trading price, and an 11% discount to the company’s five-day volume weighted average price.

While Atrum had initially hoped to raise A$10-million through the share placement, the company told shareholders that due to strong demand, Atrum had agreed to increase the placement.

“We are pleased to announce that we have successfully obtained commitments to raise A$13.5-million,” said Atrum executive chairperson Robert Bell.

“In 2017 we will progress development of Groundhog North, delivering samles to be tested by some of the world’s largest steel mills and progress the permitting process at Groundhog North.

“We are also planning to begin export sales of ultra-high grade anthracite from Pennsylvanian producer Atlantic Carbon Group. We are entering the seaborne market in an exciting time of rising coal and anthracite prices.”

Funds raised by the placement will supplement Atrum’s existing facilities, allowing the company to complete milestones at the Groundhog North project. Planned activities to be funded by the placement include bulk sampling and further development of the mining studies and permitting, as well as working capital.