Montem Resources Ltd (ASX:MR1) has raised A$5.2 million in a share placement to sophisticated or professional investors at A$0.17 per share to advance its coking coal projects in Canada.
The company has a portfolio of hard coking coal (steelmaking coal) projects in western Canada’s Crowsnest Pass region including the Tent Mountain Mine re-start project, the Chinook Project and greenfield exploration projects.
Montem intends to use placement funds to advance the Chinook scoping study and complete the permitting for the re-start of the Tent Mountain Mine.
“Delighted with support”
Montem managing director and CEO Peter Doyle said: “We are delighted with the support for the placement and welcome a number of highly credentialed institutional investors to the register.
“On behalf of the board, I also thank our existing shareholders for their ongoing support.”
The placement provides financial strength and positions the company to advance its two hard coking coal projects.
These projects lie within category 4 land of the 1976 Coal Development Policy for Alberta, which allows for surface mining subject to the normal permitting process.
“A clear signal”
Doyle said: “The company is fortunate to have an exciting portfolio of hard coking coal assets, with both Tent Mountain and Chinook located on favourable Category 4 land.
“The placement affirms our belief in the potential of our projects and provides a clear signal that the investment community understands the opportunity and differentiation Montem presents in the region.”
To submit licence application
The company is on track to submit a mining licence application and permit amendments for the Tent Mountain Mine in mid-2021 providing near-term production, with the restart of production targeted for early 2023.
Montem will also advance the potential world-class Chinook Project, which the recent scoping study indicated as an economic and technically viable project with upside, justifying progression to the pre-feasibility study stage.
Placement details
The company has issued 30,394,021 new shares to raise $5,166,984 at 17 cents per share through the placement, which was strongly supported by new and existing investors, and several new Australian and offshore institutional investors join Montem’s register.
Petra Capital Pty Limited acted as sole lead manager and sole book-runner to the placement.
