COAL COMPANY DIVERSIFIES TO FUND PROJECTS
2 March 2011,
COAL explorer Bandanna Energy Limited (BND) will seek to sell interests in some of its core assets to potential partners in a bid to meet funding requirements for projects in the Bowen Basin.
The move comes after a successful $76 million capital raising in December and a further strategic review to attain funds in addition to current cash reserves.
Bandanna’s share price has nearly doubled since September last year when it released its annual report for FY10, with more than 1 billion tonnes of JORC (Joint Ore Reserves Committee) compliant coal resources it aims to commercialise.
In the quarter ending December 31 2010 the business recorded $2.38 million in negative net operating cash flows, with estimated cash flows for the current quarter of $6.1 million.
The company has appointed UBS for assistance with the sale while Freehills will provide legal advice.
BND shares rose 1.4 per cent this morning to $1.46 per share.
Record rainfall in the Bowen Basin has severely hampered output for miners in the region with Macarthur Coal recording a 20 per cent fall in coal sales.
Find out more about these two mining giants in our special Top 50 Public Companies edition in March.