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() to be re-named Pacific American Coal (ASX:PAK) has lodged a third prospectus to raise up to $5 million priced at $0.20 to assist with its compliance with the ASX’s spread compliance for re-listing on the stock exchange.
It now expects to re-list on the ASX on 16 February 2015.
The company has already raised $3.7 million from the offer above the minimum subscription of $3.5 million allowing it to raise the remaining $1.3 million sought.
is acquiring a 30% stake in Georges Colliers Inc the owner and operator of the P8 Mine in Oklahoma which is already cash flow positive with an existing contract with a local power station.
This would allow it to benefit from the strong domestic U.S. economy and improved demand for metallurgical coal in 2015.
has the option to increase its equity in GCI up to 80% which has plans to boost production from P8 Mine to 1.25 million tonnes per annum and to upgrade the coal output so that it can supply steel producers with low volatile pulverised coal.
Proceeds from the capital raising will also help fund a feasibility study to expand the mine initial exploration at its coal tenements in British Columbia and secure leases in Oklahoma and Colorado.
Combined JORC coking coal exploration targets across the entire portfolio are between 697 – 1031 million tonnes.
Capital Raising
has already received applications totalling $3725200 from 198 applicants and allotted 18626000 Shares and granted 18626000 Options under the Prospectus on 19 December
2014.
The company is required to meet the following ASX conditions to re-listing:
- There are at least 300 holders of securities each having a parcel of Shares with a value of at least $2000; and
- At least 50% of the company’s ordinary shares are not held by related parties.
Re-branding
will be re-branded as Pacific American Coal Limited after the reverse merger with Texas and Oklahoma Coal Company which holds the North American coal assets is completed.
It will consolidate its existing 73.1 million issued shares on a 1 for 10 basis into 7.3 million new shares and issue 56 million new $0.20 shares with 16.8 million options to the Texas and Oklahoma Coal Company for U.S. and Canadian coal assets valued at $11.1 million.
P8 Mine
The P8 Mine is a producing coal mine held under mining lease and located in the Arkoma Basin of Oklahoma.
It is located 30 kilometres south of the coal barging river ports at Van Buren and close to water power rail links and Fort Smith with a population of 86000.
The mining lease contains both metallurgical and thermal coal types with a JORC Measured 8.97 million tonnes Indicated 4.37 million tonnes and Inferred 0.38 million tonnes for a total of 13.72 million tonnes.
It currently operates via a contracting agreement with South Central Coal Company which employs a skilled workforce of 73 people.
Since 2008 the P8 Mine has averaged an annualised output of approximately 450000 tonnes of “Run of Mine” production and projected a similar rate of Run of Mine production for 2015 to generate a surplus cash flow of US$2.0 million.
P8 produces a steaming coal with high ash 10500 Btu per pound / 5837 kcal per kilogram that supplies a local Oklahoma power station.
has evaluated potential for production of a higher value PCI which is a pulverised coal that is suitable for steel making that is recovered by crushing screening and washing of Run of Mine coal.
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