News blog
Strategic Natural Resources
- BY: Andrew Hore |
- POSTED: 25/08/2011 |
South African coal miner Strategic Natural Resources has raised £1.9m at 19p a share in order to finance some of the capital equipment needed to commence underground mining at Elitheni.
The cash will be used to buy the equipment with longer lead times. This investment will enable Strategic Natural Resources to satisfy its offtake agreement with steel supplier Trasteel International. The first shipment is in June 2012 and the company has to deliver 500,000 tonnes of coal in 12 months. A further 1.5m tonnes will be shipped by the end of 2014. Trasteel has first right of refusal on coal produced in excess of 2m tonnes.
A longer-term financing package is still required. There was £3.54m in the bank at the end of February 2011.
Strategic Natural Resources owns 74% of the Elitheni coal mine.
Cooch 1095 Ltd, which was nominated by the company’s black empowerment partner, subscribed for the shares and this will take its stake to 20.1%. Prior to the placing the share price was 13.75p. At 16.38p a share, Strategic Natural Resources is valued at £17.9m.
Download the August 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFAugust2011_23.pdf
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