Australia’s Attila Resources Ltd. (ASX: AYA, AYAO) said Oct. 7 that it has received commitments to raise up to A$7m (before costs) through the issue of up to about 11.67 million shares at A60 cents per share.
This money will be applied primarily towards: the completion of a Bankable Feasibility Study (BFS) on Attila’s Gurnee Property at the Kodiak Coking Coal Project; completion of a resource assessment on the company’s Seymour Project, Upper Thompson and Project X; and general working capital purposes. These are all coal mining properties in Alabama.
The placement puts Attila in a strong financial position as it progresses the BFS on its 70% owned Kodiak Coking Coal project. The recently announced pre-feasibility study (PFS) demonstrated that Attila has the potential to deliver hard coking coal at an all in cash cost that is in the bottom 10% of all international metallurgical coal producers.
Attila is targeting completion of the BFS at the end of the first quarter of 2014. Discussions with potential offtake partners and other finance providers are advancing well with strong interest from a number of parties, the company added.
Attila Executive Director Evan Cranston said: “We are very pleased with the strong support received for the Placement which ensures Attila remains well funded beyond completion of the BFS on the Kodiak Coking Coal project. Funds raised pursuant to the Placement will also enable Attila to advance our other projects in the Cahaba basin which have the potential to further improve the already robust economics of the Kodiak Coking Coal project.”
He added: “Our recently completed Pre-Feasibility Study highlighted the technical and economic strength of the Kodiak Coking Coal project. We are looking forward to fast tracking the newly acquired Upper Thompson seam and Project X into the future production profile of our exciting hard coking coal project.”