Total
0
Shares
Allegiance Coal (ASX:AHQ) plans acquisition and capital raise
New Elk coal loading train. Source: Allegiance Coal
Market Herald logo

Find out more about this capital raise

Be the first with the news that moves the market
  • Allegiance Coal (AHQ) enters a trading halt while it plans a capital raise and acquisition
  • It isn't certain who or what the company will be acquiring nor how much will be raised
  • Earlier this week, AHQ and its offtake partner replaced the coal blend to be sold following some less-than-pleasing results in the original blend
  • AHQ expects to come out of the trading halt on Friday, July 30 by which time it would have made the acquisition and funding details public
  • Company shares last traded at 72 cents on Tuesday, July 27

Allegiance Coal (AHQ) has entered a trading halt while it plans a capital raise and acquisition.

It isn't certain who or what the company will be acquiring nor how much will be raised. The funds may support the acquisition but this isn't yet clear.

AHQ expects to come out of the trading halt on Friday, July 30 by which time it would have made the acquisition and funding details public.

Earlier this week, Allegiance Coal announced a change to its offtake agreement with Mays Mining.

The companies signed a four-year deal in December for Mays to acquire Pratt seam coal on a monthly basis to blend with blue seam coal from AHQ's New Elk coking coal mine.

Due to some less-than-pleasing test results, the Blue Pratt blend's status and value was reduced and the companies have agreed to replace Pratt coal with Nickel Plate and American (NPA) coal seams.

NPA coal seams are ultra-low ash, ultra-low phosphorous and have lower sulphur than the Pratt seam. They also show higher coke strength characteristics that will improve product quality and value.

Allegiance expects the first sale of the Blue NPA blend will begin in the final quarter of the year as it depends on how the recommencement of production progresses at New Elk.

Production is around three weeks behind the mine's original schedule but should be recovered and exceeded by early September.

Company shares last traded at 72 cents on Tuesday, July 27.

AHQ by the numbers
More From The Market Herald
Castle Minerals (ASX:CDT) - Non Executive Chairman, Michael Atkins - The Market Herald

" Castle Minerals (ASX:CDT) begins week in trading halt

Castle Minerals (CDT) has begun the week in a trading halt while it plans the details of an upcoming capital raising.
Nova Minerals (ASX:NVA) commissions sample prep lab at Estelle Gold Project

" Nova Minerals (ASX:NVA) enters trading halt ahead of share placement

Nova Minerals (NVA) has entered a trading halt while it plans a capital raise.
The Market Herald Video

" Widgie Nickel (ASX:WIN) drilling to start after IPO

Widgie Nickel (WIN) shares opened at 24 cents this morning, just days after the company debuted on the ASX to tap into demand
Tesserent (ASX:TNT) - Non Executive Chairman, Geoff Lord - The Market Herald

" Tesserent (ASX:TNT) ends week in trading halt

Tesserent (TNT) has ended the week in a trading halt in regard to an upcoming capital raising.