Allegiance Coal Ltd. has completed a $15 million placement at $0.08 per share with investors. The company also intends to offer a share purchase plan (SPP) to shareholders at $0.08 per share, the same price as the placement, capped at $2 million. The funds will be applied toward development at New Elk, the Tenas environmental assessment application, debt repayment and working capital.

Following the placement, the company said it is strongly positioned to advance the New Elk mine into production by mid-2021 while continuing to advance approvals for the Tenas project with its joint venture partner Itochu.

Chairman and Managing Director Mark Gray said, “The placement was well received with interest from offshore and Australian institutional and wholesale investors.”

The SPP opened on February 24 and will close at 5 p.m. (Sydney time) on March 27.