Celsius Coal (ASX: CLA) has gained a new investor and an immediate $5 million in equity funding from a Singapore investor.
Blumont Group Limited (SGX:A33), formerly Adroit Innovations will be issued with 227,272,727 ordinary Celsius shares at $0.022 per share.
Last sale price for Celsius was $0.025.
In addition, there is a convertible note facility offered by Blumont enabling Celsius to draw between A$3 million to A$5 million after 30 June 2013.
The notes will carry interest at the rate of 12.5% per annum payable half-yearly.
They can be convertible into ordinary shares of Celsius based at the 20-day volume weighted average share price before conversion and subject to a floor price of A$0.025 per share and a cap of A$0.030 per share.
During the quarter, Celsius completed a confirmatory exploratory drill program at its Uzgen Basin Coking Coal Project located in Central Kyrgyzstan.
The company said it is on track to deliver a maiden JORC coal resource in the first quarter of 2013.
Minserve have been retained for on-going coal assaying and mining advice and to potentially undertake a scoping study in 2013.
Mining – Sary Mogol (Alai Range Project) & Min Teke (Uzgen Basin Coking Coal Project)
During the quarter open pit mining commenced at Sary Mogol mining lease targeting the excavation of at least 5,000 tonnes of high grade thermal coal for sale to the domestic market to comply with the conditions of the Company’s Development / Mining License.
To date approximately 7,300 tonnes of coal has been mined at Sary Mogol. The Company anticipates generating a small cash flow from these activities.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.