Forge Resources (CSE:FRG) has secured up to C$2 million ($2 million) through a private placement as benchmark coal prices reach multi-year highs.
The company will issue up to 8 million units at C$0.25 each, with each unit comprising one common share and one warrant exercisable at $0.40 for 24 months. Ventum Financial will act as agent on the placement.
Coal prices have surged significantly, with Newcastle thermal coal reaching US$146.60 per tonne on 2 September, up 35% year‑on‑year. Metallurgical coal reached US$271.50 ($376.86) per tonne, up 45% annually.
Forge holds an 80% interest in Aion Mining, which is developing the fully permitted La Estrella Coal Project in Santander, Colombia. The project contains eight known seams of metallurgical and thermal coal.
Colombia’s recent presidential election has created a more favourable environment for mining development, with Abelardo de la Espriella winning the June runoff on a market‑oriented platform supporting resource industries.
CEO P.J. Murphy says the company is at a “confluence of factors” that validate the economics of responsible development projects in Colombia.
“Internationally benchmarked coal prices remain at levels that validate the economics of responsible development projects, and the political outcome in Colombia has given operators like Forge Resources a much clearer runway to advance our work in a stable and supportive regulatory environment,” Murphy adds.
Forge Resources will use the placement proceeds to advance La Estrella development and for working capital. The placement is expected to close around 15 September, subject to Canadian Securities Exchange approval.
Write to JC Villarba at Mining.com.au
Images: Forge Resources
