Coal development company Prairie Mining Ltd said on Tuesday it has agreed terms for a further investment with its cornerstone investor CD Capital.
CD Capital will invest AUD2.0 million in non-redeemable, non-interest-bearing convertible loan notes from its CD Capital Capital Resources Fund III LP, issued into a private placement by PDZ Holdings Proprietary Ltd, a subsidiary of Prairie which holds its tier one coking coal projects.
The notes can be exchanged into ordinary shares of Prairie at 28 pence per share, meaning that CD Capital will have a 23% stake in Prairie, with an additional exercise of CD Capital’s options that could increase the stake to 30%.
The investment will go towards further accelerating Prairie’s Debiensko hard coking coal project, and advance per-construction engineering works at its Jan Karski mine, both in Poland.
“Following on from our recent successful placing to a number of high-quality UK based institutional investors, CD Capital’s increased investment in Prairie reaffirms the global significance of our Tier One coking coal assets in Poland. We are delighted with the continued support from our cornerstone investor who shares Prairie’s vision to become Europe’s next strategic coking coal project.”
Shares in Prairie Mining were down by 2.8% at 32.56 pence on Tuesday.