Final Terms Agreed For CD Capital Additional Funding

23/2017 - 6 lipca 2017

Podstawa prawna:

•Prairie and CD Capital agree final terms for a further investment of US$2.0m in the form of non-redeemable, non-interest bearing Convertible Loan Notes

•Funding increased to accelerate the redevelopment of Prairie’s Debiensko Hard Coking Coal Project and advance pre-construction engineering works at its Jan Karski Mine

•Subject to Shareholder approval, Notes issued by way of a private placement by PDZ Holdings Limited which will be convertible into ordinary shares of Prairie at A$0.46 (28 pence) per share (same price as the recent Institutional Placement) and will be subject to a lock up period during which time CD Capital may not convert the Notes prior to 1 April 2018

•Based on the current share capital, conversion of all of CD Capital’s Notes and exercise of CD Capital’s options would result in approximately a 30% shareholding in Prairie

Prairie Mining Limited („Prairie” or „Company”) is pleased to announce that it has finalised terms for the previously announced additional investment from its cornerstone investor CD Capital Natural Resources Fund III LP („CD Capital”), subject to shareholder approval.

The investment will take the form of a private placement of non-redeemable, non-interest bearing convertible loan notes („Notes”) for an aggregate principal amount of US$2.0 million upsized from the previously announced A$2.0m. The Notes can be exchanged into ordinary shares of the Company at A$0.46 per share representing the price of the share placement to a number of high quality UK institutional investors completed in April 2017 („Institutional Placement”). The Notes are subject to a nine month lock up period whereby they are convertible after 1 April 2018.

The proceeds from CD Capital’s investment, combined with the net proceeds from the Institutional Placement, will enable Prairie to further accelerate the development of its Debiensko Hard Coking Coal Project and advance pre-construction engineering works at its Jan Karski Mine. Prairie and CD Capital will continue working together in partnership to de-risk and enhance the significant value of Prairie’s world class coking coal assets as they progress rapidly through the next stages of project development.

Prairie’s CEO Ben Stoikovich commented: „CD Capital’s additional investment in Prairie reaffirms the global significance of our Tier One coking coal assets in Poland. We are delighted with the continued support from our cornerstone investor who shares Prairie’s vision to become Europe’s next strategic coking coal supplier.”

The issue of the Notes are subject to shareholder approval and the Company expects to lodge a Notice of Meeting in the coming weeks.

For further information, please contact:

Prairie Mining Limited Tel: +44 207 478 3900

Ben Stoikovich, Chief Executive Officer Email: info@pdz.com.au

Sapan Ghai, Head of Corporate Development