Tiaro Coal (ASX:TCM) is raising funds through a Share Purchase Plan to progress its exploration activities and to provide working capital.
The offer price will be the lower of $0.082, or a 15% discount to the volume-weighted average price of TCM shares traded on the ASX over the five trading days up to and including when the offer closes on 5 September.
Shareholders can purchase up to $15,000 worth of shares. The offer is open to the limit of 30% of its issued capital according to the ASX Listing Rules.
“Tiaro is giving its shareholders the first opportunity to participate in a capital raising ahead of brokers and sophisticated investors,” chief executive officer Dan Buckley said.
“This approach allows shareholders who participate to maintain their equity position in Tiaro and not dilute.
“Directors that hold shares have indicated that they will be participating at the maximum level permissible.
“A strong response by shareholders will alleviate the need to raise additional funds in the short term.”
Tiaro Coal holds a 47.6% interest in Paragon Coal, which owns EPC 956 and EPC 957 in the Maryborough Basin in South East Queensland.
EPC 956 hosts the T9 West Area, which has a total Resource of 87 million tonnes of coal.
The company had recently commenced a Pre-Feasibility Study studying a potential 5.5 million tonnes per annum Run of Mine production from 19 coal seam groups that carry metallurgical coal.
