The funds are expected through an overbid placement of 11.7 million shares at 60c each to institutional and sophisticated investors. These commitments are subject to shareholder approval in early November, with the placement to be completed over two tranches.

Attila executive director Evan Cranston said the placement would ensure the company was well funded beyond the completion of the Kodiak bankable feasibility study.

“Our recently completed pre-feasibility study highlighted the technical and economic strength of the Kodiak Coking Coal project,” he said.

“We are looking forward to fast-tracking the newly acquired Upper Thompson seam and Project X into the future production profile of our exciting hard coking coal project.”

Attila signed agreements last month to acquire the Upper Thompson, Gholson and Clarke (Project X) seams on the Kodiak project’s Gurnee property.

The newly raised funds will be used to help complete the BFS on the Gurnee property, plus define resources on the project’s Seymour property as well as the Upper Thompson and Project X seams.

The explorer will also use new funds to complete a scoping study on its new Upper Thompson project.

These acquisitions are within 2.5km from Attila’s coal plant and expected to increase production to the Kodiak project’s initial 2 million tonne per annum plans.

Attila owns 70% of Kodiak Mining Company, which operated the Coke No.1 continuous miner operation on the project’s Gurnee Property until the end of 2008, when it was placed on care and maintenance.

The explorer has previously blamed under-performance by mining contractors, inadequate mine planning and funding plus ventilation issues as reasons behind this closure.