https://www.engineeringnews.co.za
Africa|Coal|Financial|Mining|Operations
Africa|Coal|Financial|Mining|Operations
africa|coal|financial|mining|operations

Bowen secures A$50m funding for Ellensfield ramp-up

2nd November 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Queensland-based Bowen Coking Coal on Thursday announced a A$50-million equity raising to fund the ramp-up of mining at Ellensfield South pit until it achieves steady-state production in the second half of the 2024 financial year.  

The equity raise will consist of a fully underwritten offer of fully paid ordinary shares through an institutional placement to raise A$17-million and a one-for-six prorata accelerated nonrenouncable entitlement offer to existing shareholders to raise A$33-million.

The offer price for both the placement and entitlement offer will be A$0.90, which represents an 18.2% discount to Bowen’s last closing price of A$0.11 a share and a 15.1% discount to the theoretical ex-rights price of A$0.106 a share.

Kirmar has committed to a A$16-million investment in Bowen on the same terms as the committed shareholders. Kirmar is an affiliate of Kirmar Trust, which holds a 50% stake in the AMCI group. AMCI has several mining operations in Canada, the US, Australia, Chile and South Africa.

Bowen noted that Kirmar was keen to participate in the growth of the coal company, which has significant synergies with the neighbouring Fitzroy operation.

The Ellensfield South pit forms part of the Burton Complex. At steady state, the pit will produce 2-million to 2.4-million tonnes a year for three years, after which the mining fleets are expected to relocate into the larger Plumtree North pit.

Edited by Creamer Media Reporter

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer
Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.067 0.125s - 160pq - 2rq
Subscribe Now