Industrea, which this week won a major $35.6 million order from BHP Billiton Mitsubishi Alliance for its collision avoidance system equipment designed for open cut mining operations, is believed to be assessing VLI as a complementary business to its Advanced Mining Technologies subsidiary.

Industrea managing director and chief executive Robin Levison confirmed the funds raised would be used to enhance Industrea’s financial flexibility and fund future growth opportunities, including potential future acquisitions.

“Demand for our highly specialised products and services continues to grow in line with the global mining sector, particularly in our well-established position servicing the Australian and Chinese coal mining industries,” he said.

“The funds raised through this placement, in combination with our existing undrawn debt facilities, means we are now able to take full advantage of future opportunities.

“Industrea has a proven track record of organic growth and growth through acquisition. We will continue our disciplined approach when evaluating future opportunities.”

The sale process, which is being conducted by Ernst & Young, has been initiated by investment group Catalyst.

Catalyst lenders converted some of the debt into a 20% stake in “financially distressed” Valley Longwall last year, according to the AFR’s Dealbook in late July.

Catalyst paid almost $250 million to acquire Valley Longwall back in 2007.

Last year, Valley Longwall consolidated its business into three divisions of drilling, diesel and conveyors.

Products from the diesel division include the Driftrunner underground personnel transporter, the Brumby utility vehicle and the Jug-A-O utility loader.

Valley Longwall also manufactures specialised in-seam directional drilling systems and stocks a wide range of hydraulic and mechanical spares and consumables.

The company is also a major manufacturer, maintainer and distributor of conveyor products and components.