Jameson shakes tin for Crown Mountain
PERTH (miningweekly.com) – Coal explorer Jameson Resources has raised A$2-million through a share placement to fund the environmental permitting process at its Crown Mountain coking coal project, in British Columbia.
The ASX-listed junior would issue about 14.3-million shares, at a price of 14c each, with an attached option at 16c each, to qualifying institutional and sophisticated investors.
The share would be issued under the company’s placement capacity, and as such would not require shareholder approval.
Jameson said on Thursday that the capital would be used to fund the company’s ongoing environmental assessment at the Crown Mountain project.
A previously concluded prefeasibility study had estimated that the Crown Mountain project would have a net present value of around $369-million, an internal rate of return of 33% and a payback period of 2.7 years.
Based on a resource estimate of 23.7-million tonnes, the project was expected to have a base-case production of between 1.5-million tonnes and 2-million tonnes of coal a year over a 16-year mine life. Start-up capital for the project has been estimated at $339.7-million.
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