Jameson Resources (ASX:JAL) has locked in binding commitments from existing shareholders and other sophisticated investors willing to collectively inject $3.5 million into the coking coal explorer.
Euroz Hartleys acted as lead manager to the placement, which involves the issue of 100 million new shares at $0.035 each – a 12% discount to the 21 May closing price.
The first tranche will comprise the issue of 98.4 million shares to raise about $3.44 million of the total under Jameson’s existing placement capacity.
Tranche two, meanwhile, is subject to shareholder approval and comprises the issue of a further 1.6 million shares to Chair Nicole Hollows, non-executive Director Steve Van Barneveld and Managing Director Michael Gray.
The cash raised will be used to progress Crown Mountain Hard Coking Coal Project in British Columbia, Canada through to environmental approvals and indigenous engagement.
This includes the completion of technical studies in response to information requests from Indigenous Nations, regulators and the public and finalisation of the revised environmental assessment for submission.
Hollows says the updated review of project economics, ongoing progress toward regulatory approvals and recent strong support for resource development from both the provincial and Canadian governments provide continued confidence in the development of the Crown Mountain Hard Coking Coal Project.
A Bankable Feasibility Study estimates the project will produce an average of 86% coking coal and 14% pulverised coal injection over a 15-year mine life to produce 1.7 million tonnes of coal each year from three open pits.
Crown Mountain sits 11km south of Line Creek and 8km north of Elkview, both projects owned by Teck Resources (NYSE:TECK).
Jameson Resources, which has a market capitalisation of $24.4 million, is a New South Wales-headquartered company focused on the development of the Crown Mountain Hard Coking Coal Project.
Additionally, the company owns the Dunlevy Coal Project, which is also based in British Columbia.
Write to Angela East at Mining.com.au
Images: Jameson Resources
