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News: Pacific American Coal to hit the ASX boards Monday morning

  1. Pacific American Coal (ASX:PAK) is set to re-commence trading on the Australian Stock Exchange on Monday 16th February 2015, after complying with Chapters 1 and 2 of the ASX Listing Rules.

    The company will have 58,892,600 fully paid ordinary shares, and 26,818,980 options exercisable at $0.25 each on or before 31 December 2017.

    Earlier in the month the Pacific American successfully closed its re-opened share offer, raising $3.8 million and meeting the Australian Securities Exchange’s minimum spread requirements for re-listing.

    The offer attracted 314 shareholders and applicants, meeting the minimum of 300 required.

    It had re-opened its offer on 2 January of up to 25 million shares priced at $0.20 each with a free attaching option exercisable at $0.25 expiring on 31st December 2017 to raise up to $5 million.

    At the time Geoff Hill, chairman, commented:

    “Now that the offer has successfully closed, we will be moving quickly to complete the purchase of our strategic U.S. coal assets,” chairman Geoff Hill said.

    “This will place the company on a new growth path, thanks to production from the P8 Mine in Oklahoma and development projects we have in Canada and the U.S.”

    The funds will be used to acquire a 30% stake in Georges Colliers Inc, the owner and operator of the P8 Mine in Oklahoma, which is already cash flow positive with an existing contract with a local power station.

    This would allow it to benefit from the strong domestic U.S. economy and improved demand for metallurgical coal in 2015.

    Proceeds from the capital raising will also help fund a feasibility study to expand the mine, initial exploration at its coal tenements in British Columbia and secure leases in Oklahoma and Colorado.

    Pacific American, formerly Metals Finance, has the option to increase its equity in GCI up to 80%.

    Its strategy is to expand production to 1.25 million tonnes per year Run of Mine as part of a broader strategy to produce and export 2 million to 3 million tonnes of metallurgical coal within 3-5 years.

    Combined JORC coking coal exploration targets across the entire portfolio are between 697 – 1,031 million tonnes.


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