Attila Resources (ASX: AYA) will soon be finalising the acquisition of the highly prospective Kodiak coking coal project in the U.S. following the securing of A$14 million in funding to finance the deal.
The company expects to complete due diligence, legal documentation and exercise the option to acquire the Kodiak Project on or around 27 June 2012.
Attila conducted a capital raising comprising $13 million of convertible notes and a $1 million share placement.
The $13 million has been raised via the issue of 26 million convertible notes with a three year term and a conversion price of $0.50.
Each convertible note holder will also be entitled to subscribe to a fully paid ordinary share at an issue price of $0.20 to raise a total of $1 million on the basis of 1 share for every 13 convertible notes subscribed for.
Kodiak deal
Attila has entered a binding heads of agreement to secure the mining rights to two coal seams which are found throughout the Kodiak Coal Project, owned by Kodiak Mining Company.
Kodiak has an exploration target of between 80 and 100 million tonnes of hard coking coal, based on 118 historical coal bed methane wells and diamond core holes.
Coal found at Kodiak is of good quality, with low ash and sulphur content and very high fixed carbon.
Once Attila exercises its option to the Kodiak project, drilling will commence with the aim of establishing a JORC Resource.
Importantly, the Kodiak project has access to full infrastructure already in place, including a wash plant and rail infrastructure. The project has full permits for operation and is licensed on private land.
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