Jameson Resources (ASX:JAL) has received binding commitments to raise $3 million through the issuance of around 54 million new, fully paid ordinary shares at a price of $0.055 per new share across a two-tranche share placement.
The issue price represents a discount of 24.4% to the 15-day volume weighted average price of $0.073.
Funds raised through this placement will be used primarily for the preparation of the final environmental assessment application for the Crown Mountain Hard Coking Coal Project in British Columbia, Canada.
Interim Chair Michael Gray says that the company welcomes the support of both existing shareholders and new investors for this placement.
“The company notes market fundamentals that highlight strong long-term coal price forecasts due to demand growth from new steel production capacity in India and elsewhere and a structural supply gap for steelmaking coal due to falling production and a lack of new supply,” Gray says.
“Progress of the environmental assessment has reached a key milestone with regulators advising completion of the application review and requesting Jameson submit the final revised environmental application.
“The company will use the funds raised to progress completion of that application for submission in the second half of 2026.”
The placement will be completed in two tranches, with tranche one comprising around 52 million new shares and tranche two comprising an additional 1.7 million shares.
Michael Gray and non-executive Directors Steve Van Barneveld and Michael McDonald have confirmed their commitments to subscribe for equity in the placement.
The issue of shares to directors is subject to shareholder approval at a date to be confirmed.
Jameson Resources is an Australian company focused on development metallurgical coal projects in Western Canada.
Write to Amy Rotman at Mining.com.au
Images: Jameson Resources
