This article is 15 years old. Images might not display.
The explorer recently secured a port allocation of 4 million tonnes per annum at the planned coal export terminal, which is due to start shipping in 2014.
Bandanna’s allocation is subject to signing a take-or-pay agreement and Wiggins achieving a financial close in April 2011.
The explorer is also aiming for more than 20Mtpa of production from its wholly owned “golden triangle” of the Springsure Creek, Arcturus and Arcadia projects, with all the tenements within 50 kilometres of each other in thermal coal turf in the southern Bowen Basin.
“The strong support shown by a diverse group of new and high-quality institutional investors in this placement demonstrates the significant level of interest in Bandanna Energy and its portfolio of emerging coal projects,” Bandanna managing director Ray Shaw said.
“The proceeds raised from the placement will be used by Bandanna for pro-rata funding for the development of essential export infrastructure, including for the financial close of stage one at the Wiggins Island Coal Export Terminal.
“Bandanna has been allocated 4 million tonnes per annum of capacity as a preferred shipper at WICET.”
The stage one owners of WICET are Xstrata Coal, Wesfarmers, Yancoal, Aquila Resources, Caledon Resources, Cockatoo Coal, Northern Energy and Bandanna.
Other members of the consortium, such as BHP Billiton, Rio Tinto and Macarthur Coal, are not stage one owners, but had the opportunity to take part in the recent expressions of interest phase that closed about three months ago.
The total capacity available from the first stage of the Wiggins Island development is 27Mtpa.
Bandanna’s extra funding will also be used for ongoing exploration and development spending at Dingo West, the Golden Triangle projects, the South Galilee project and general working capital purposes, Shaw said.
The placement was priced at $1.42 per share, an 11.6% discount to the five-day volume-weighted average price on December 13, and will result in the issue of 53,533,323 ordinary shares to participating investors.
Bandanna’s share price was 19.5c lower at $1.525c this morning.
