Tiaro Coal (ASX:TCM) is now well funded after completing a non-renounceable rights offer with all new shares allocated.
The issue included 131.4 million shares at $0.01 to raise $1.314 million, with this amount including oversubscriptions accepted and underwritten shares.
Funds will be used to progress the company’s exploration and project assessment activities, and retire an intercompany loan with subsidiary, Paragon Coal Pty Ltd.
Tiaro holds interests in various Queensland projects covering coal prospects in the Maryborough and Galilee Coal Basins.
The company has been progressing plans to develop a coking-PCI coal mine in Queensland with its T9 West Project Pre-Feasibility Study now at the mine planning and economic analysis stage.
The Mesozoic Maryborough Basin is located between Gympie and Bundaberg in the in the Wide Bay - Burnett region of southeast Queensland.
The region is well serviced by nearby infrastructure, including manpower, mining support services, road, rail and port facilities.
The rail line between Brisbane and Gladstone bisects the basin.
Analysis
Tiaro Coal has received support from existing shareholders and underwriter Refresh Capital Limited to raise $1.314 million.
The Pre-Feasibility Study for the T9 West area is scheduled to be completed by the end of 2014.
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