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In total 18 million $0.20 options were placed with an expiry of 23 December 2016. Shareholders will now be asked to approve the issue, and the directors confirm that the allotees are not related parties to the directors.
Highlighting support for the company's operations, the directors have also successfully placed the shortfall from the company’s pro rata non-renounceable option entitlement issue.
Baru Resources: A Queensland coal play
Baru holds large scale coal exploration targets and acreage in the under explored but prospective North Western Galilee Basin.
The West Galilee Project comprises six contiguous, granted exploration coal permits and one application exploration coal permit covering an area of 6,732 square kilometres, and is located 375 kilometres east of Mt Isa and 16 kilometres west of the town of Richmond.
This location is close to the northern margin of the Eromanga basin, which overlies the coal bearing Galilee Basin and in part the newly defined Millungera Basin.
It is located 110 kilometres west of Guildford Coal’s (ASX: GUF) plus one billion tonne Hughenden Project, which lies at the northern end of the Galilee Basin.
Historically there has been very little exploration for coal deposits within and around the project area and a majority of the drilling in the surrounding areas were either targeted at petroleum or stratigraphic (geological) holes.
However, there has been increasing interest in the northern portion of the Galilee basin over the last 12 months.
Galilee region exploration hotting up
The potential of the Galilee Basin to host large coal deposits is evidenced by Linc Energy’s (ASX: LNC) project area in a similar basin margin stratigraphic setting, 120 kilometres to the east, with Indicated and Inferred Resources of thermal coal respectively of 161.4 million tonnes and 78.3 million tonnes.
To the south-east, on the eastern margin of the Galilee Basin, both Linc Energy and Waratah Coal have reported Inferred Resources of 326 million tonnes and 4.3 billion tonnes of thermal coal respectively.