Last checked at 
LONDON (Alliance News) - Strategic Minerals PLC Monday said it had raised GBP1 million by placing 166.7 million shares at 0.6 pence each, with the net proceeds of about GBP950,000 to be used mainly to go towards the costs of buying and developing the Tatu coal mine project.
Of the shares placed, 82 million were issued within the company's existing share authorities, while the issue of the remaining 84.7 million will need to be approved by its shareholders at the annual general meeting on July 2.
"The company is looking at a number of options to fund the full development of the Tatu project such as prepayments on offtake, contractor support and equipment financing. The company looks forward to providing further announcements in due course," it said in a statement.
Strategic Minerals also said it has issued new joint broker Cornhill with 8.3 million warrants exercisable at the placing price over the next 36 months.
The company said in late March that it had struck a deal to acquire the Tatu Coal Mine project in New Zealand for about GBP128,000, with the majority of the consideration due by way of future royalties. It said it expected production cash flows to start within one year of the full acquisition, and the planned production levels to be around 200,000 tonnes per year upon completion of the mine shaft.
"The expected future cash flows from this project once fully operational, when combined with the existing Cobre asset, are expected to support the long term sustainability of Strategic Minerals. The company continues to look to source additional expansion projects and we look forward to updating shareholders with our progress," Chairman John Peters said Monday.
Strategic Minerals shares were down 0.2% at 0.624 pence Monday afternoon.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
