Queensland, Australia-based low-volatile metallurgical coal producer Macarthur Coal has announced that it is planning raise approximately AU$429 million (US$382 million) through issue of new shares to fund the AU$334.35 million acquisition of up to 90 percent of MCG Coal Holdings Pty Ltd, owner of a metallurgical coal deposit in Queensland, Australia.
Macarthur seeks between AU$11.25 and AU$11.75 per each share from institutional investors.
On top of the purchase price, Macarthur will also contribute AU$25.65 million to MCG for exploration and a feasibility study on the so-called MDL162 coal deposit, as well as for a coal industry consortium's AU$5.1 billion offer to buy a coal rail network from the Queensland state government in Australia. Macarthur is a member of the consortium.