Montem Resources Limited (ASX:MR1) has completed a share purchase plan (SPP) announced last month, raising A$200,000.
The SPP was initiated to build on the momentum from the company’s recently completed A$5.2 million placement to advance its coking coal projects in Canada.
Around 1,176,475 new shares will be issued under the SPP on Monday, March 29, 2021, and are expected to commence trading on ASX on Tuesday, March 30, 2021.
Firm financial footing
This SPP and recent placement provide Montem with a firm financial footing to advance its two hard coking coal (steelmaking coal) projects in western Canada’s Crowsnest Pass region.
The company plans to progress the potentially world-class Chinook Project, intending to use the results from detailed coal quality test-work along with new geological information from the 2020 exploration program to update the Chinook Vicary JORC resource estimate, which is expected in quarter two of 2021.
Montem will also look 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.
Both 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.