Montem Resources Limited (ASX:MR1) has launched a share purchase plan (SPP) to raise A$500,000, building on the momentum following its recently completed A$5.2 million placement to advance its coking coal projects in Canada.
Under the SPP, eligible shareholders will have the opportunity to subscribe up to A$30,000 worth of new fully paid ordinary shares in the company.
The company will issue new shares under the SPP at a fixed issue price of A$0.17 per share, a 2.86% discount to the last closing price and a 5.28% discount to the five-day volume-weighted average market closing prices immediately preceding the announcement date, February 24, 2021.
SPP details
The SPP will not be underwritten and shares will rank equally with the company’s existing shares on issue.
The SPP is proposed to open on Friday, March 5, 2021, and scheduled to close at 5 pm (AEDT) on Friday, March 19, 2021.
The timetable of key dates.
Firm financial footing
This SPP and recent placement provide Montem with a firm financial footing to advance its two hard coking coal (steelmaking coal) projects in western Canada’s Crowsnest Pass region.
The company plans to progress the potentially world-class Chinook Project, which the recent scoping study indicated as an economic and technically viable project with upside, justifying progression to the pre-feasibility study stage.
Montem will also look to submit a mining licence application and permit amendments for the Tent Mountain Mine in mid-2021 providing near-term production, with the restart of production targeted for early 2023.
Both projects lie within category 4 land of the 1976 Coal Development Policy for Alberta, which allows for surface mining subject to the normal permitting process.