The entitlement offer completed: 118,000,000 shares issued at 1 cent, raising $1.18M before costs. This doubles the share count. Funds go to working capital, the strategic review and new opportunities, including outside mining.
What it means for a shareholder
118m new shares at A$0.010 to raise about A$1.2m. That's 94% dilution: every existing holder's slice gets 94% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 1.3% to 0.0794% of the company. To keep it you'd need 1,475,000 more shares - about A$14,750 at the issue price.
Shareholders took up only 28,283,152 shares ($282,831.52) of the offer. The rest is a shortfall passed to underwriter CPS Capital, so the full $1.18M is still expected to be raised.
Prospectus lodged for the 1-for-1 entitlement offer at 1 cent to raise up to $1.18M, fully underwritten by CPS Capital. Closing date is 29 August 2014. This formalises the offer announced on 2 July; shares are described as highly speculative.
Non-executive director Mark Sanders resigned immediately, citing increased business commitments. He will keep assisting the board as needed. The board is now four directors.
June 2014 quarter: investor talks continued with no deal. The strategic review of Kinney, including a possible part or full sale, is confirmed, with Tony Brennan as Chairman. The report warns Kinney could be lost if APA payments are missed. $30,000 of the director loan was drawn.
The company starts a strategic review of Kinney, including a possible sale of part or all of it, and will consider new projects in any sector. Tony Brennan becomes Chairman. A 1-for-1 entitlement offer at 1 cent raises $1.18M, underwritten by CPS Capital. A director loan of up to A$100,000 funds operations.
March 2014 quarter: recaps the US$9M purchase-price saving. Financing talks remain at an advanced stage with no deal. The Long Canyon auction is now expected in the second half of 2014, slipping again from mid-2014.
Kinney purchase agreement renegotiated: total price cut from US$25M to US$16M and outstanding payments from US$15M to US$6M, paid in US$1M instalments from November 2014. If the notes aren't repaid, the project goes back to the vendor. Long Canyon sale now expected mid-2014.
Half-year to 31 December 2013: loss of $378,057 versus $504,814 a year earlier. Work continued on investor talks, the Long Canyon assessment and rail logistics. No post-period events reported.
December 2013 quarter: financing talks with multiple investors and offtake negotiations continue, with no deal announced. The Long Canyon acquisition is still expected in Q1 2014. The report no longer gives an end-2013 BFS date, and the BFS is described as ongoing.
September 2013 quarter: due diligence done on the Long Canyon federal lease (55.8Mt resource), with sale now expected in Q1 2014, later than the September quarter previously expected. Financing talks with prospective stakeholders continue; no deal yet. BFS still due end 2013.
Annual report for the year to 30 June 2013 for New Horizon Coal, with the same directors and BDO as auditor. Covers eight drill holes, the pre-feasibility study, the Texas port agreement and the Long Canyon assessment. Financial figures are not in the extract.
June 2013 quarter recap: the US$23M start-up capital study, the Long Canyon environmental assessment completed, Headwaters MB engaged, and the $570,000 director placement done. Next quarter focuses on offtake, the BFS and financing. Nothing new beyond earlier announcements.
Managing Director's letter acknowledges the share price has not met expectations. It says the company is in talks with financing partners via Headwaters MB, and repeats the cut in start-up capital from US$63M to US$23M. It targets production in 2014. No funding is secured.
A study by John T Boyd cuts Kinney start-up capital from US$63M to US$23M (a US$40M saving) by starting with one mining section, used equipment and existing rail loadout. This follows the April review; full build still said to reach 2 Mtpa. BFS due late 2013.
Denver investment bank Headwaters MB engaged to advise on financing the Kinney project and to explore debt, equity, joint venture and merger options. A financing plan is promised within weeks. This is an advisory mandate, not funding secured.
Corrects the 26 April option figures: 5.5M listed options at 20 cents and 5.5M unlisted options at 30 cents, not 1.5M each as first stated. Share numbers unchanged.
The second tranche completed on 26 April 2013: 7,125,000 shares at 8 cents raised $570,000 from directors and associates, with 1.5M listed options at 20 cents and 1.5M unlisted options at 30 cents. 5M options at 50 cents were also cancelled.
What it means for a shareholder
7.1m new shares at A$0.080 to raise about A$570,000. That's 47% dilution: every existing holder's slice gets 47% smaller. If you held A$1,000 of shares (12,500 at the issue price), your slice goes from 0.156% to 0.0826% of the company. To keep it you'd need 11,133 more shares - about A$891 at the issue price.
March 2013 quarter: $2M raise completed, Long Canyon lease sale now expected September quarter, and drilling licences secured for mid-year drilling. The company declined to bid on the Dry Canyon tract on current economics. Bankable study to finish by end 2013.
Company starts a review to cut Kinney capital costs of US$117M, with potential savings up to 25%, via used equipment, financed or contract-mined options and an existing rail loadout. Review completes mid-2013 and feeds the bankable study due late 2013.
April 2013 presentation repeats Kinney highlights, now citing a 20-year mine life and construction to commence Q1 2014. Share price $0.07, 118M shares, cash about $1.3M. No new results; the longer mine life is a company claim not yet backed by a study here.
Announcement relates to Norseman Gold plc, a different company, about extending settlement of a deed of company arrangement. It has no apparent bearing on this company's own position.
Dilution disclosure for the February placement: 19.22% total dilution to existing holders. Delta Capital managed the raise for a 1% management fee plus 5% of funds raised. Administrative follow-up to the 8 cent placement.
Half-year to 31 December 2012: loss of $504,814 (versus $165,912 a year earlier), total comprehensive loss $734,519. Activity was the Kinney drilling, PFS, port LOI and lease work. Post-period events include the February placement.
February 2013 presentation repeats the PFS and 110.6Mt resource, with a share price of $0.08, 118M shares after the placement and about $2M cash. Adds Greg Hunt as chief operating officer. No new results.
Tranche 1 of the January placement completed: 17.875M shares issued at 8 cents, raising $1.43M for working capital. Total shares now 106.875M. Tranche 2, which includes director participation, still needs shareholder approval.
What it means for a shareholder
17.9m new shares at A$0.080 to raise about A$1.4m. That's 69% dilution: every existing holder's slice gets 69% smaller. If you held A$1,000 of shares (12,500 at the issue price), your slice goes from 0.156% to 0.0483% of the company. To keep it you'd need 27,930 more shares - about A$2,234 at the issue price.
December 2012 quarter: Kinney pre-feasibility study completed, Texas port letter of intent signed, and environmental work continued on the Long Canyon and Dry Canyon federal coal lease tracts, with lease acquisition expected mid-2013. Next quarter starts the bankable feasibility study. Largely repeats known facts.
