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Montem Resources raising funds to develop metallurgical coal mines in Canada

  • Source: steelguru.com
  • Sep.29,2018

Proactive Investors reported that Montem Resources Ltd lodged its prospectus to raise up to USD 20 million and list on the ASX via an initial public offering (IPO). The company aims to develop multiple steelmaking coal mines from its existing asset base, the Chinook Properties, which includes four projects in Canada. Following a successful capital raising and on listing, Montem is likely to have a market cap in the range of USD 50 million to USD 55 million. The prospectus offers up to 40 million new ordinary shares at an issue price of 50 cents per share.

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Montem’s capital raising is expected to close in early October, and trading of Montem shares is expected to commence mid-October.

Montem managing director and chief executive officer Peter Doyle said: “Montem is enthusiastically focused on completing our listing on the ASX. The company’s Chinook Properties contain large volumes of low strip-ratio metallurgical coal adjacent to rail, and alongside some of the major producing coking coal mines in Canada. Coking coal prices are again reaching toward historic highs, with forecasters continuing to expect robust pricing for hard coking coal as China and India continue to lift imports of this essential ingredient for their steelmaking. The macro environment for metallurgical coal remains strong, as steel margins continue to build, with US steel (and coal) prices lifting markedly.”

Montem has multiple properties covering 220 square kilometres, including four metallurgical coal projects that have been mined previously. These brownfield projects, known as the Chinook Properties, contains an estimated 163 million tonnes of high quality, metallurgical coal. The Chinook Properties are located in the Crowsnest Pass region of Alberta, Canada, adjacent to the major production zone of hard coking coal in Canada, which includes five large open-cut mines operated by Teck Resources. Montem’s most advanced project is the restart of the Tent Mountain mine, where existing permits provide a significant timing advantage.