A $12.5 million institutional placement at 90c per share is already complete, while a 2-for-13 renounceable entitlement offer at 80c per share will be available to eligible shareholders in a bid to raise $13.2 million.

This entitlement offer is fully underwritten by Bizzell Capital Partners, RBS Morgans Corporate and Wilson HTM Corporate Finance.

The price is a 27% discount to the closing price of $1.10 per share on Thursday.

Since listing in December 2009 the company has proved up 99 million tonnes of inferred resources at the Mackenzie River coking coal project and 219Mt inferred at The Range thermal coal project.

“The capital raising will allow the company to accelerate not only progress towards development of these quality coal projects, but also the company’s exploration portfolio,” Stanmore managing director Nick Jorss said.

“We are extremely pleased with the strong demand from domestic and offshore investors in the institutional placement.

“The placement was heavily oversubscribed and we would like to thank those new and existing shareholders who participated for their support.”

The record date for the offer is October 12, while it closes October 29 with new shares to be issued on November 10.

Stanmore’s wholly owned Mackenzie open cut project in the Bowen Basin is next door to Aquila Resources’ Washpool project, with first coal production expected in 2015.

The Range project in the Surat Basin is also expected to produce coal in this timeframe.

Prefeasibility studies will kick off in 2011.

Stanmore shares closed up 2c to $1.12 on Friday afternoon.