(EnergyAsia, February 13 2013, Wednesday) — Singapore investment firm Blumont Group has agreed to invest a total of A$10 million in equity and convertible notes for a stake in Australia-listed Celsius Coal, the companies have announced. (US$1=A$0.96).
Blumont will pay A$5 million for 227.3 million new Celsius Coal shares at 2.2 Australian cents a share, giving it an 11.6% stake in the enlarged share capital of the explorer and miner which is developing coking and thermal coal deposits in Kyrgyzstan. The Singapore firm will pay another A$5 million for convertible notes in the second half of 2013 at A$0.025-0.030 per share carrying 12.5% annual interest.
Celsius Coal, which owns 80% of the Uzgen Basin coking coal project in the Central Asian country, said the two companies will review additional investment opportunities in Central Asia.
Grant Thomas, Celsius Coal’s managing director, said:
“I’m happy that our 2013 programme is fully-funded with this strategic alliance. We are already planning an accelerated physical exploration program to commence this northern hemisphere spring.
“We hope the prospectivity of these projects becomes clear in the minds of investors once our maiden JORC Code compliant resource is released in March. The opportunity to cooperate with Blumont to review other potential projects in Central Asia is also exciting.”
Celsius Coal has nominated chairman Alexander Moleneux to the Blumont board while the Singapore firm is expected to soon name its candidate to the Australian firm’s board.