Wollongong concludes institutional component of A$66.7m raise
PERTH (miningweekly.com) – ASX-listed Wollongong Coal has raised A$49.6-million in the institutional component of its 19-for-20 entitlement offer, aimed at raising about A$66.68-million.
The company said on Monday that it would issue about 2.75-billion shares under the institutional component.
The second stage of the entitlement offer would allow eligible retail shareholders to subscribe for 19 new shares for every 20 shares held, at an issue price of 1.8c each.
While Wollongong has raised A$135.92-million since November last year, under four rights issues, the company has maintained that its financial needs remained pressing while operations were suspended at its New South Wales mines.
To date, the company has used the raised funds to pay outstanding statutory dues, to pay the majority of outstanding amounts owed to suppliers, as well as interest payments to the company’s bankers, to negotiate the reinstatement of the coal sector job package and to ensure that all employee payments were made.
The primary purpose of the new entitlement offer was to provide funds for the repayment of a draw-down facility provided by shareholder Jindal Group.
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