New South Wales coal miner, Endocoal, has lodged its prospectus with the Australian Securities and Investments Commission to explore for coal in Queensland's Bowen Basin.
The company had initially hoped to raise $12 million, however strong demand for the stock both in Australia and abroad has led the company to raise its target to $17 million. A European commodity trader and a Chinese coal miner are among those interested in the stock. 28.3 million new shares will be issued at 60c a share.
The company has 10 exploration tenements covering approximately 5000sq km and is focussing its exploration program on two lead projects – Orion Downs and Rockwood, where exploration drilling began in September 2009.
Results at Orion Downs have identified potential export-quality thermal coal within a number of shallow coal seams up to a total of 12 metres in thickness. Independent coal quality analysis has indicated that the coal may be suitable for export without the need for a wash plant. Drilling at Rockwood has also shown encouraging results, with thick seams of coal intersected at depths of less than 80 metres.
“Endocoal is well positioned to benefit from long-term growth and strong underlying demand in the global thermal and coking coal markets”' said managing director Rod Austin.
Trading in the shares is expected to begin on 29 April.
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