Prairie Mining Limited („Prairie” or the „Company”) is pleased to announce that it has placed 11,500,000 new ordinary shares in the capital of the Company (the „Placing Shares”) at a price of 28 pence per share (the „Placing Price”), to raise approximately £3.2 million before expenses (the „Placing”).
Commenting on the Placing, Prairie Mining Chief Executive Officer, Ben Stoikovich said: „We are delighted to welcome a number of high quality new UK based institutional investors onto the Company’s shareholder register as both projects move into a new chapter of their development. Strong support from these institutional investors further validates Prairie’s vision to become Europe’s next strategic coking coal supplier through the advancement of our two Tier 1 coking coal projects in Poland.”
The net proceeds from the Placing, which is in response to demand for the Company’s shares from UK based institutional investors, will be used for the further development of the Company’s Polish coal development projects. In particular, the Placing will enable Prairie to accelerate the development of its Debiensko Hard Coking Coal project for which the results of a positive scoping study were recently announced, including additional drilling in support of Feasibility Study work. In parallel, Prairie is also on track to complete a Bankable Feasibility Study in the second half of 2017 for its Jan Karski Mine, for which the proceeds of the Placing will be partly applied to advance pre-construction engineering works such as the provision of high voltage power supply to the mine site area, and the permitting processes.
Together with the Company’s existing cash resources (A$13.1 million as at 31 December 2016), the proceeds of the Placing will help ensure that Prairie retains a strong balance sheet position as it approaches a construction decision for Jan Karski and rapidly advances Debiensko.
The Placing Shares represent the maximum permitted share issuance without triggering the requirement to produce a prospectus in the United Kingdom when taken with relevant share issues in the previous 12 months. The Placing Price represents a 12.5% discount to the last closing price of the Company’s ordinary shares on the London Stock Exchange („LSE”) of 32 pence.
Tamesis Partners LLP („Tamesis”) is acting as lead-manager in connection with the Placing together with Mirabaud Securities LLP („Mirabaud”) as co-manager (together the „Managers”).
For further information, contact:
Prairie Mining Limited +44 207 478 3900