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The Markets
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The Markets
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Tech

International Coal oversubscribed in $9m IPO, strong demand for Queensland coal play

Having raised in excess of $9 million within four days of opening its IPO to the public, this is an auspicious beginning in life for soon to be listed International Coal and a testimony to the "pulling power" of its coal tenements in Queens

International Coal (ASX: ICX) is the clear leader of the IPO pack in recent months, with more than $9 million of stock snapped up at $0.20 by investors in the first four days of the offer - far higher than expected.

The impact from the investor interest has potentially provided the opportunity for International Coal to fast track an ASX listing to around Friday 22nd July, three weeks earlier than the proposed mid-August listing.

The investor interest is likely to have been sparked by Bundaberg hard coking coal project tenements in the Maryborough Basin. It has a small JORC Resource of around 1.5 million tonnes, however the target is 380 million tonnes of coking coal at the project.

This is a growing hard coking coal precinct judging by its near neighbours that include Northern Energy (ASX: NEC), Guildford Coal (ASX: GUF) and Ridge and Hancock Coal. Recent significant drill programs have been successful in defining coal.

A short-term exploration program will focus on infill drilling and core testing at the Bundaberg Project.

Adding longer term spice, International Coal also owns the South Blackall Project in the Eromanga Basin, a larger scale thermal coal target adjacent to East Energy’s (ASX: EEC) 1.2 billion tonne JORC Resource.

A scout drilling program and a comprehensive 2D seismic program will kick off smartly after listing at the project.

Independent reports indicate the company’s projects to be highly prospective and an experienced exploration team has been engaged.

The objective is to get drilling in 2011 and prove up a JORC Resource in early 2012.

With an ASX listing due around 22nd July, and aggressive drill program on the back of a significant cash in the bank should provide International Coal with plenty of news flow and upside potential.

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