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Montem Resources successfully completed an A$8 million capital raising during its second attempt to list on the ASX, and hit the bourse by trading between 25-32c.
Around 1.9 million of its 160 million shares traded hands, although the register is tightly held, with the top 20 shareholders owning almost 80% of the company.
Montem was established in 2016 to develop hard coking coal projects in western Canada, and after a failed attempt to raise $20 million at 50c in 2018, was more successful with a smaller raising backed by Morgans Corporate as underwriter.
Montem, which is headed up by Canada-based Peter Doyle and ex-Glencore coal boss Mark Lochtenberg as managing director and chairman, respectively, said it received strong support from institutional and retail investors, as well as existing shareholders.
The company's immediate focus is to resurrect production at the 60 million tonne Tent Mountain mine, with the IPO funds needed for early works, ahead of planned sales from 2022 at a rate of 1Mtpa of tier two coal.
A positive definitive feasibility study was completed pre-listing, mapping out what's needed to restart production at tent Mountain, which was mothballed in 1983 due to poor market conditions.
The company expects to generate earnings of $65 million per annum, and at a coal price of US$150/t payback is expected in five years.
Permitting was described as well advanced, and Montem has secured rail and port access, with the aim to sell to Asian steel mills.
Montem says it has had "positive discussions with certain parties to identify the possible sources of finance, including with major banks, Asian trading houses and export finance corporations".
Tent Mountain needs A$168 million in development capital.
The junior has also pressed the button on drilling at the Chinook project, which is surrounded by players including Canada's Teck Resources, Hancock Prospecting's Riversdale Resources and ASX-listed Atrum Coal and is expected to become a source of tier one coking coal.
Chinook includes the Vicary mine, which ceased operations in the late 1970s, and that presents an immediate drilling focus. A concept study will be completed next quarter.
Montem shares hit the bourse at 32c and closed flat at its IPO price of 25c, capitalising the company at $41.5 million.
