The share placement, comprising 66.5 million shares at 8 cents per share, will be undertaken subject to shareholder approval which will be sought at the annual general meeting, likely to be held in early November 2014.
The transaction announced on June 2 and approved at a general meeting held on July 30, involved a 15% strategic investment by Ample Skill in Nowa Ruda, for a total of $5 million.
This investment was to be made via equity in Balamara’s local Polish subsidiary company, Coal Holding.
Since the announcement of this deal, Balamara has introduced two new Polish thermal coal projects to its existing portfolio, Mariola and Sawin.
“Both the company and its major shareholder recognise the requirement for cash within Balamara to be used across all three assets, not quarantined into just one via the original project-specific deal,” the company said.
“The parties have agreed a price for this placement that reflects a compromise to both the current share price and the share price at the time the original deal was concluded.”