Attila Resources (ASX: AYA) has managed to raise $6.5 million in equity in a challenging capital market to ratchet up development of its Kodiak Coking Coal Project in Shelby County, Alabama U.S.A.
The placement of of 8.125 million ordinary shares at $0.80 to institutional and sophisticated investors was oversubscribed.
Funds raised will advance a feasibility study for Kodiak.
Kodiak currently hosts an Inferred JORC Resource of 81 million tonnes of premium hard coking coal with a 12,400 metre drill program continuing with the aim of converting the Resource to the measured and indicated categories.
Analysis from a total of 8 holes has previously indicated that the Atkins and Coke coal seams will produce a premium hard coking coal product.
Importantly, the results received to date demonstrate that the coal quality is very consistent throughout the basin contained within the Kodiak Project.
Given this, ED Evan Cranston said earlier that discussions with several key potential off-take partners in the export market and potential financing solutions were being explored.
Attila is funded to complete a BFS in second half 2013.
Seymour Property
Funding will also the enable acquisition of the Seymour property with JORC compliant drilling to commence in early 2013.
This was a low cost option to acquire additional hard coking coal leases on Seymour Property located 3.5 km south of the Kodiak Project.
Where there is a Exploration Target of 87-93 million tonnes of coal, highlighting the potential to significantly increase the existing 81 million tonne Kodiak JORC resource.
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