On 15 September 2015 Malabar announced that it had entered into legally binding agreements to increase its stake to 100% from 38.27% as at 30 June 2015 of Spur Hill.
The agreements entail an initial $3 million payment to Malabar’s joint venture partner followed by a series of deferred payments totalling $13 million on defined milestones and a 1.75% royalty on future coal sales from the project.
Malabar also embarked on a 15 for 17 fully underwritten non-renounceable entitlement offer to raise $6 million.
The entitlement offer, which was fully underwritten by four shareholders, was completed on 13 October 2015 with applications received for over 78% of the offer.
The shortfall was taken up by the underwriters to raise gross proceeds of $6 million for the company.
“Given the current investment climate for resource stocks, the Malabar management is pleased with the high percentage application rate and the underwriting support shown by key shareholders,” the company said in its latest quarterly report.