Settlement of $12m Share Placement at 18 cents
Sydney, July 24, 2013 AEST (ABN Newswire) - Cuesta Coal Limited (
ASX:CQC) ("Cuesta") is pleased to announce settlement of the $12 million placement to major shareholder Longluck Investment (Australia) Pty Ltd, a wholly-owned subsidiary of Beijing Gouli Energy Investment Co.
On 22 February 2013, Cuesta announced it had executed a Share Placement Agreement to raise a further $12 million by issuing 66,666,667 new ordinary shares at A$0.18 per share.
$5m of the placement proceeds has been used to redeem half of the vendor convertible notes issued for the recently acquired Orion Coal Project. The remaining $7 million will be used by Cuesta for working capital purposes, predominantly to fast-track the development of Cuesta's flagship Moorlands Project, which now incorporates the Orion Coal Project tenements.
The Moorlands Project contains 146.1Mt of export thermal coal, including 53.5Mt of JORC Measured and Indicated Resources, with significant exploration upside. The Moorlands Project comprises EPCs 775, 776 and 1738 and is located 14km to the west of the Blair Athol Coal Mine and rail access.
Cuesta Coal Managing Director Matthew Crawford commented: "We are pleased to have finalised this placement which is another vote of confidence in the Company by our major shareholder Beijing Guoli. This funding provides Cuesta with the financial flexibility to progress the development of the Moorlands project and we look forward to updating shareholders on our progress."
Contact
Matthew Crawford
Managing Director
Cuesta Coal Limited
TEL: +61-2-9284-5900
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