Cuesta raises cash for Moorland development
PERTH (miningweekly.com) – Coal developer Cuesta Coal has executed a share subscription agreement with Hong Kong-based investment firm Hanford Holdings to raise A$8.4-million for its flagship Moorlands project, in Queensland.
ASX-listed Cuesta said on Thursday that it would issue about 75-million shares, over two tranches, to Hanford Holdings.
The first stage of the share placement would see the junior place 50-million shares, at an issue price of 11c each, before the end of October. The second stage, consisting of 25-million shares at 11.6c each, would be completed by the end of November, or when Foreign Investment Review Board approval was obtained.
“We are pleased to have executed this placement agreement with Hanford. They are very professional and understand the mining industry, and will be a welcome addition to our shareholder base as we move into a phase of adding significant value to our assets,” said Cuesta MD Matthew Crawford.
He noted that the company would use the funds from the placement to continue the development of its Moorlands project, which currently has a 146.1-million-tonne Joint Ore Reserves Committee-compliant resource.
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