Coal mining company New Hope is looking to increase its stake in Malabar Resources by committing up to A$105m ($68.4m) in an equity-raising initiative.
In a stock exchange filing, the coal miner said that it “has committed to take up to A$105 million of a minimum A$160 million institutional placement equity raising launched by Malabar Resources Limited (Malabar) earlier today (Malabar Equity Raise).”
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New Hope will use its current cash reserves to fund the commitment.
The Malabar Equity Raise, which seeks a minimum of A$160m, has drawn a firm placement allocation of A$76m from New Hope, which will increase its shareholding from 15% to a projected 19.9%.
In addition to the firm placement, New Hope agreed to a conditional placement allocation of A$29m, subject to approval from Malabar shareholders.
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If granted, this would further elevate New Hope’s stake in Malabar to nearly 23%.
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By GlobalDataThe new ordinary shares in Malabar will be issued at a price of A$1.80 each and the equity raise will dilute existing shares by approximately 17.7%.
Funds from the Malabar Equity Raise are earmarked for the acceleration of the Maxwell Mine Project, which includes the development of a 300m-long wall.
In August 2022, New Hope secured mining leases approval from the Government of Queensland in Australia for stage three of the New Acland project.
