Carabella to raise $12M to explore Bowen

CARABELLA Resources has lodged a prospectus to raise $12 million to explore for coal in central Queensland under the helm of its newly appointed managing director, Mitch Jakeman.
Carabella to raise $12M to explore Bowen Carabella to raise $12M to explore Bowen Carabella to raise $12M to explore Bowen Carabella to raise $12M to explore Bowen Carabella to raise $12M to explore Bowen


Lou Caruana

Exploration is being focused on Mabbin Creek, in the northern Bowen Basin, which is located close to road, rail and power infrastructure, and adjacent to coking coal mines operated by BHP Billiton, Peabody and Anglo Coal Australia.

Carabella’s tenement portfolio comprises seven exploration permits for coal, of which two are granted and five are at application stage, covering a total area of around 3600 square kilometres in the Bowen, Mulgildie, Clarence-Moreton and Eromanga basins.

The company has delineated a maiden JORC coking coal resource of about 92 million tonnes, comprising 21.8Mt of indicated and 69.9Mt of inferred resources, at the Grosvenor West prospect on the eastern border of the tenement.

The company has also identified more than 450Mt of prospective coal exploration targets in the Mabbin Creek tenement area, which will be the focus of its exploration activities following its listing on the Australian Securities Exchange.

Carabella chairman Michael Addison said the company’s short-term strategy was to continue to develop its other exploration targets at Mabbin Creek, to establish a substantial resource base and to develop successful and profitable downstream coal mining operations.

“The proceeds will be used to fund the next two years of the company’s exploration program, including infill drilling and core testing at Grosvenor West; a comprehensive 2D seismic program at Mabbin Creek; a scout drilling program at target sites at Mabbin Creek; and preliminary 2D seismic surveys and scout drilling at the company’s other tenements,” he said.

“The offer proceeds will also be used to pay the remaining $2 million of the cash consideration payable for the acquisition of the tenements held by Carabella.

“The directors believe the quality and prospectivity of Carabella’s assets, and its experienced management team, leaves the company well positioned to benefit from long-term growth in the global export coking and thermal coal markets.”

Addison said Jakeman’s experience and industry expertise would be beneficial in developing the company’s coal exploration portfolio.

“In particular, he has an outstanding knowledge of the Mabbin Creek area, based on his senior management roles at Anglo Coal’s Moranbah North and Grosvenor coal projects adjacent to the Mabbin Creek tenement,” he said.

Jakeman has more than 30 years experience in the coal industry, including senior roles at BHP, Shell Coal and Rio Tinto.

He was previously the head of operations at Anglo Coal Australia, where he oversaw the production of some 40Mt per annum of coking and thermal coal in Queensland and New South Wales.