Since ramping up the Newpac longwall earlier this year, the company is now looking to improve productivity and purchase extra equipment to make longwall relocations faster and more efficient.

In April, the company forecast a gap of approximately two months between the completion of Longwall 1 and the commencement of Longwall 2.

Resource Pacific managing director Paul Jury said the funds raised would also be put towards reducing debt levels.

“The ongoing commitment from Marubeni – who have continued to develop long-term coal sales contracts and market development in Japan – has been of great value to the company,” Jury said.

“The share issue will further strengthen the strategic relationship between the two companies, and demonstrates a major vote of confidence by Marubeni in the future of the company.”

Following this placement the company’s issued shares will total 231,218,643 and Marubeni’s total shareholding will increase to 13%.