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Pacific American Coal raises funds to progress Canadian coking coal project

Pacific American Coal (ASX:PAK) has successfully closed its entitlement offer with 81% acceptances, raising $1.45 million at $0.10 per share.
Pacific American Coal raises funds to progress Canadian coking coal project
Pacific American Coal raises funds to progress Canadian coking coal project

The shortfall of $330,000 is being placed by the underwriter Far East Capital, to raise a total of $1.78 million.

Given the strong level of demand for the entitlement offer, Pacific American is planning to raise another $220,000 from a top up placement.

Last month, the company engaged Palaris Australia to deliver a scoping study for its Elko Coking Coal Project in the East Kootenay Coal Basin of British Columbia, Canada.

The project contains a JORC 2012 resource of 257.5 million tonnes of coal in an area of 3,571 hectares.

The scoping study is scheduled to be delivered in Q1 CY2017 and will provide a preliminary assessment of the technical and commercial viability of the project.

It is worth noting that during the period from 1 July 2016 to 28 October 2016, spot coking coal price increased 274% from US$93 to US$255 per tonne.

The Elko Coking Coal Project is positioned within 20 kilometres of coal rail infrastructure at the southern base of the East Kootenay Coal Basin.

This makes it the closest project in the area to the port of Vancouver.

Pacific American is focusing on marketing Elko coking coal into the Asian region due to the suitability and favourable shipping location.

The company’s share price has increased by about 145% since the beginning of 2016, last trading at $0.13.

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