Coal explorer Stanmore Resources said on Thursday it would raise about A$694 million ($506.06 million) to fund the acquisition of an 80% stake in BHP Mitsui Coal (BMC), a joint venture in Queensland, from global miner BHP Group.
Stanmore said it would issue about 631 million shares through a proposed entitlement offer at A$1.10 per share, a 12% discount to stock’s last close.
The $1.35 billion deal, which became unconditional last month, gives the Brisbane, Australia-based coal explorer majority control of BMC’s two open-cut metallurgical coal mines in the Bowen Basin in Queensland.
Stanmore forecast output from the combined business of between 5.9 million tonnes (mt) and 6.5 mt of saleable coal on a 100% basis for the six months ended Dec. 31. That compares with saleable coal production of 2.1 mt logged in fiscal 2021.
Stanmore said its majority shareholder, Golden Energy and Resources Ltd, will subscribe for $300 million worth of shares.
($1 = 1.3714 Australian dollars)
(By Sameer Manekar; Editing by Amy Caren Daniel)
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