Cabral Resources Ltd. filed a prospectus outlining a public offer to raise gross proceeds of up to A$5 million and a name change to Bowen Coking Coal Ltd.
The company first announced plans to raise at least A$4.5 million, acquire Cape Coal Pty. Ltd. subsidiary Bowen Coking Coal Pty. Ltd. and change its name in April. Cabral and Cape Coal amended the deal earlier in August to extend the deadline for completion.
The public offering will comprise up to 217,391,304 ordinary shares priced at 2.3 cents apiece to raise up to A$5 million, with a minimum subscription requirement of at least A$4.6 million, according to the Aug. 3 prospectus. CPS Capital Group Pty. Ltd. is acting as lead manager to the public offer.
The public offer, which is not underwritten, is subject to various conditions, including the ASX approving Cabral's recompliance with its admission requirements and being reinstated to trading.
The prospectus also includes an offer of 70 million ordinary shares and 26 million performance shares to Cape Coal as consideration for the acquisition of Bowen Coking Coal.
The company is also offering 54,347,826 ordinary shares to Australian Pacific Coal Ltd. under an agreement to acquire the Cooroorah and Hillalong properties from Australia Pacific Coal subsidiary Area Coal Pty. Ltd.
In addition, Cabral is offering 17,391,304 shares to Acacia Coal Ltd. under an agreement to acquire the Comet Ridge coal project.
If the maximum is raised under the public offer, Cape Coal will hold a 14.39% interest in the company and Australian Pacific Coal will hold an 11.17% interest.
The company will also acquire Cape Coal's 15% and 5% interests in the Lilyvale and Mackenzie coal joint ventures, respectively, with Stanmore Coal Ltd.
The Cooroorah, Hillalong, Comet Ridge, Lilyvale and Mackenzie properties are all located in Queensland, Australia. Cooroorah forms part of the Blackwater coal property.
Cabral will use a portion of the proceeds for continued exploration and development of the Bowen Coking Coal properties.
Upon completion of the deal, Gregory D'Arcy, a nonexecutive director at Cabral, will resign. The company plans to appoint Gerhard Redelinghuys as managing director and CEO and Eddie King as nonexecutive chairman, along with Steven Formica and James Agenbag joining the board as nonexecutive directors.
Cabral expects the offers to close Aug. 18, with the acquisition scheduled to close Aug. 31 and its shares to be reinstated on Sept. 5.