Funds To Advance Chinook And Tent Mountain Projects In Canada
Montem Resources Limited (ASX: MR1) has successfully complete of an A$5.2 million placement to advance its projects in Canada.
Montem has a portfolio of hard coking coal (steelmaking coal) projects in western Canada’s Crowsnest Pass region including the Tent Mountain Mine re-start project (Tent Mountain), the Chinook Project (Chinook), and greenfield exploration projects.
Montem intends to use funds from the Placement to advance the Chinook scoping study and complete the permitting for the re-start of the Tent Mountain Mine.
Managing Director and CEO, Peter Doyle, said this Placement positions the company strongly to advance its two hard coking coal projects. They are both located within Category 4 of the 1976 Coal Development Policy for Alberta (Coal Policy) which allows for surface mining subject to the normal permitting process. This status is unaffected by the Alberta Government’s recent decision to reinstate the Coal Policy.
Mr Doyle said the Company is on track to submit the mining licence application and permit amendments for the Tent Mountain Mine in mid-2021 providing near-term production, with restart of production targeted for early 2023. The company will also advance the potentially world class Chinook Project, which the recent Scoping Study indicated as an economic and technically viable Project with upside, justifying progression to the Pre-Feasibility stage.
“We are delighted with the support for the placement and welcome a number of highly credentialed institutional investors to the register. On behalf of the Board, I also thank our existing shareholders for their ongoing support,” Mr Doyle said.
“The Company is fortunate to have an exciting portfolio of hard coking coal assets, with both Tent Mountain and Chinook located on favourable Category 4 land. The Placement affirms our belief in the potential of our projects and provides a clear signal that the investment community understands the opportunity and differentiation Montem presents in the region.”
Petra Capital Pty Limited acted as sole lead manager and sole bookrunner to the Placement.