They have signed subscription agreements for placements of Tigers Realm Coal shares at A16.5c a share valued at $36.2 million and $16.3 million respectively.

Tigers Realm also plans to offer a placement to existing and new shareholders and a share purchase plan of, in aggregate, up to $9.5 million at 16.5c a share.

Together these will all bring anticipated proceeds of $62 million.

Tigers Realm shares finished yesterday at 17c a share.

The funds will be used to complete the bankable feasibility study for the Project F coking coal mine at Amaam North, complete mine project design and apply for a mining licence.

It will also help pay for further drilling at Amaam and Amman North and let the company further pursue Project F’s development.

Tiger Realm CEO Craig Parry said the investment by two international funds demonstrated confidence in the company’s coal projects and management team by investors with considerable experience investing in Russia.

“Investment in the company by Baring Vostok Private Equity Fund V and the Russian Direct Investment Fund is a major event for Tigers Realm Coal and confirms our view that the Amaam projects are world class and have the potential to deliver more than 1 billion tonnes of coking coal within the two project licences,” he said.

The funding announcement follows Tiger Realms’ $21.2 million capital raising in February.

Baring Vostock is making its $36.2 million investment in two tranches.

Tranche 1 is for $21.6 million and the shares under that tranche are expected to be bought in mid-December.

The second tranche is for $14.6 million.

Other than tranche 1 of the Baring Vostok investment and the share purchase plan, all investments will be subject to shareholder approval.