Caledon boosts funds to accelerate Wiggins

CALEDON Resources has made a private placement of 4.2 million pounds ($US6.59 million) in unsecured convertible loan notes to boost working capital, especially in light of commitments to the Wiggins Island Coal Export Terminal.
Caledon boosts funds to accelerate Wiggins Caledon boosts funds to accelerate Wiggins Caledon boosts funds to accelerate Wiggins Caledon boosts funds to accelerate Wiggins Caledon boosts funds to accelerate Wiggins

Caledon's Cook Colliery.

Blair Price

The loan notes were issued at a nominal interest rate of 8.5% but also have a conversion price of 47.5 pence per ordinary Caledon share.

Caledon indicated the raised funds could go to the “potential lodging/lodgement of a bid bond associated with the Wiggins Island tonnage allocation process”

Polo Resources, already a substantial shareholder of Caledon, was a principal investor in the placement.

The new $A4 billion Wiggins Island terminal will be owned and developed by 18 coal companies and will double export capacity to 150 million tonnes per annum.

Construction is due to start in mid-2010.

Caledon’s Cook Mine in Queensland is scheduled to start mining in a new area this month.

Shares in Caledon are up 4.5% to 70c this morning.

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