Stanmore adds $10M to cash reserves

QUEENSLAND coal explorer Stanmore Coal has successfully raised $A10 million through a share purchase plan which the company says will enable it to complete its planned exploration and development activities in 2012.
Stanmore adds $10M to cash reserves Stanmore adds $10M to cash reserves Stanmore adds $10M to cash reserves Stanmore adds $10M to cash reserves Stanmore adds $10M to cash reserves

The Range location plan. Courtesy of Stanmore Coal.

Lauren Barrett

The cash injection brings the total amount of funds raised for Stanmore since December 2011 to $24.1 million.

The purchase plan offered a maximum of 13.5 million new shares at an issue price of 74c.

On December 9 it was underwritten to 9.7 million shares at 74c each, guaranteeing the company minimum subscriptions of $7.2 million.

The SPP closed on January 13, 2012.

Stanmore said the purchase plan was well supported by shareholders who subscribed a total of $5.5 million, while Wilson HTM Corporate Finance and Bizzell Capital Partners provided applications to subscribe $1.8 million.

Stanmore said strong demand for shares in the company resulted in RBS Morgans Corporate successfully completing a placement of 3.7 million shares to institutional and sophisticated investors at a price of 74c, raising a further $2.8 million.

The proceeds of the placement will be spread throughout the company’s ongoing projects, including funding of a feasibility study at The Range and continuing exploration at other key projects.

Stanmore plans to submit an environmental impact statement for The Range in 2012 and undertake a conceptual mining study for its Mackenzie project.

The Range project is targeting first coal production of 5 million tonnes per annum of saleable coking and thermal coal for 2015.