Atrum’s$20m neighbourly act

Atrum Coal has wasted no time incapitalising on the interest generated by Gina Rinehart’s $740 million takeoverbid for its neighbour, with the junior launching a $20m placement.

Thecompany will raise the funds at 17.5c per share, with Perth boutique adviserand broker Argonaut to act as lead manager.

Atrum owns the Elan Southcoking coal projectin Canada, which directly abuts the Grassy Mountain project of RiversdaleResources. Mrs Rinehart’s Hancock Prospecting last week launched a $740m bidfor Riversdale.

Amongthe directors of Atrum isCharles Fear, a co-founder of Argonaut. He told The Australian last week thatthe company had already been contacted by several parties interested instriking a joint venture over their ground.The placement price is a 19.6 percent discount to Atrum’sfive-day volume-weighted average price but is well ahead of the 14c a share atwhich Atrum wastrading before Hancock launched its Riversdale bid.