Shaw and Partners has been appointed as Joint Bookrunner and Co-Manager to an equity capital raising by Atrum Coal Limited (ASX.ATU)

Atrum is undertaking a two Tranche Placement to raise up to approximately $20 million through the issue of up to approximately 86.9 million fully paid ordinary shares in the company.

Tranche 1 of the Placement will raise up to approximately $15.3 million via the issue of approximately 66.7 million new shares pursuant to the company’s existing placement capacity under ASX Listing Rule 7.1. Tranche 2 of the Placement will raise up to approximately $4.7m via the issue of approximately 20.2 million new shares subject to shareholder approval to be sought at an Atrum General Meeting, expected to be held on or around the third week of June 2020.

The offer price of A$0.23 per security represents a discount of 17.9% to Atrum’s last close (17 April 2020) of $0.28 per share and a 2.0% discount to the 5-day VWAP of $0.2347 per share.

Atrum Coal is an ASX-listed metallurgical coal development company. Its flagship asset is the 100%-owned Elan Hard Coking Coal Project, which is located in the Crowsnest Pass area of southern Alberta, Canada. Elan hosts large-scale, shallow, thick, Tier 1 hard coking coal (HCC) deposits of the Mist Mountain Formation.

The proceeds from the Placement along with cash reserves of approximately $5.5m will be sufficient to complete the Elan Pre-Feasibility Study over the next 12 months and for infill and exploration drilling, environmental studies, coal testing and working capital.

The offer is available to Australian resident Sophisticated and Professional Investor clients only.

For more information please speak to your Shaw and Partners adviser.