(MENAFN- ProactiveInvestors - Australia) Malabar Coal (ASX: MBC) has today been admitted to the Official List of the ASX and will light up the boards this Thursday 28 March at 11am (AEDT) with around 67.5 million shares on issue.
The company's IPO offered 20 million shares at $1 each to raise $20 million.
Malabar has a 27.7% interest in the Spur Hill Underground Coal Project, located in the established coal fields of the Upper Hunter Valley in New South Wales.
The company has the right to increase its interest to 80% in Spur Hill under a previously executed farm-in agreement.
The project is located in an established coal producing region adjacent to BHP Billiton's (ASX: BHP) Mt Arthur North mine, Anglo Coal's Drayton mine and in close proximity to Xstrata Coal's Mangoola mine.
Spur Hill contains a 586 million tonne JORC Resource comprising 117 million tonnes of Indicated Resources and 469 million tonnes of Inferred Resources.
The project is expected to produce three key export quality products over the life of the mine.
These are an ultra-low ash, premium soft coking coal; a standard/typical semi-soft coking coal; and a benchmark export thermal coal comparable in quality to most major high rank bituminous thermal coal brands.
The Ulan to Muswellbrook line of the Hunter Valley Rail Network is less than 5 kilometres from the Spur Hill Project area.
Funds raised from the IPO will be allocated to the continued development of the Spur Hill Project including drilling, environmental studies and monitoring, engineering studies, development approvals and strategic land acquisitions. Â
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