Bowen Coking Coal (ASX:BCB) announced a partially underwritten pro-rata renounceable entitlement offer aimed at raising approximately $70 million before costs.
Under the offer, eligible shareholders are invited to acquire 2.66 new shares for every 1 share already held, at an issue price of $0.009 each, with an additional 1 free attaching option for every 2 new shares allocated.
Grant Samuel will serve as the financial adviser, with Shaw and Partners and Morgans Corporate acting as joint lead managers.
The raised funds are earmarked for the development of the Plumtree North Mine, port prepayments, rail guarantee obligations, and the addition of liquidity to the balance sheet.
The offer is contingent upon achieving a minimum subscription of $60 million.
Should the minimum not be met, the offer will not proceed.
A shortfall may be addressed through a shortfall offer also detailed in the prospectus, enabling placement, warrant conversion, and debt conversion provisions to remove trading restrictions on the new shares.
Nick Jorss, executive chairman of Bowen Coking Coal, commented, "We are pleased to extend this investment opportunity to our shareholders as we advance strategic projects with this vital capital raising effort."
Bowen Coking Coal is a coking coal company engaged in the development, production and sale of coal in Queensland, Australia, with a primary focus on metallurgical coal.
The company's flagship Burton Mine Complex (90% owned) near Moranbah encompasses multiple operations with the Ellensfield South and Broadmeadow East Mines serving a co-located coal handling and preparation plant and train loadout facility connected by a haul road.