Allegiance raises equity for met coal ventures

ALLEGIANCE Coal has raised A$15 million for its metallurgical coal business, with the funds go towards its developing Tenas project in British Columbia and its recently acquired New Elk asset in Colorado.
Allegiance raises equity for met coal ventures Allegiance raises equity for met coal ventures Allegiance raises equity for met coal ventures Allegiance raises equity for met coal ventures Allegiance raises equity for met coal ventures

Allegiance is targeting coal in North America

The placement to undisclosed investors was priced at 8c per new share, with a share purchase plan for $2 million to be launched. 

The fundraising comes as Allegiance "finalise(s)" a US$15 million debt facility, with first production from New Elk flagged for mid-2021. 

New Elk's capital requirement has previously been estimated at $13.5 million.  

Annual coal sales are targeted to reach a run-rate of 1.6 million tonnes by December 2021. 

Shares in Allegiance traded at A8.8c on Monday, capitalising the company at $54 million.