Balamara Resources Secures US$5M for its Nowa Ruda Coking Coal Project
Balamara Resources has got a direct equity investment of US$ 5 million into its Nowa Ruda Coking Coal Project in Poland in order to strengthen the ongoing feasibility and resource drilling
CANBERRA (Scarp Monster): Balamara Resources has got a direct equity investment of US$ 5 million into its Nowa Ruda Coking Coal Project in Poland in order to strengthen the ongoing feasibility and resource drilling works.
Hong Kong based Ample Skill, Balamara’s main shareholder and have the rights over the project has agreed to invest around US$ 5 million for its local Polish subsidiary and Coal Holdings.
The transaction should need the approval of the shareholder and the investments to be transferred over a period of three months. After the complete transfer, Ample Skills will be provided with a direct 15 percent equity interest in the Nowa Ruda Project and 37 percent stake of Balamara, by this investment.
This Coal Holding investment scheme reflects a valuable of around $36 million in the Nowa Ruda Coking Coal Project, which is greater than the company’s present market capital of $32 million and a strong support due to the significant progress in the Balamara project site since the acquirement of assets in July 2013. It removes the dilution and necessity of further capital rising.
It is reported that the investment would covers the drilling costs and feasibility costs through to mid 2015. At present, the company in conjunction with Wardell Armstrong International consultants, is undertaking a 5 hole resources definition drilling project at Nova Ruda. It may add two more holes to develop the JORC resource at the Lech deposit. All the drilling process is expected to finish by the end of this year.