Bounty gets investment backing

CONTRACTOR Bounty Mining has completed its capital raising of $A774,000 through an issue of 25.8 million shares at 3c per share.

Blair Price

The company will soon call a general meeting for shareholder approval.

Bounty said the offer was fully subscribed, with applications received from a small number of non-related sophisticated investors, and the shares would be issued over the next two weeks.

The Australia-listed company added a general meeting would be held as soon as regulatory requirements could be met, at least before the end of June.

The meeting has been called to seek shareholder approval of the April share issue and further approval to issue securities to Bounty directors at the same price of 3c per ordinary share.

Since January, Anglo Coal has decided not to extend Bounty’s two coal contracts in Queensland due to the downturn in the metallurgical coal market.

Bounty has subsequently begun a contract, as well as additional work, at Peabody’s Chain Valley mine and has redeployed the majority of its workforce and a fleet of equipment.

The combination of the new contract and the termination of work in Queensland created a working capital shortfall.

Bounty shares are unchanged at 2.5c.

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