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CD Capital committed to helping develop Prairie’s Lublin coal project

Published by
World Coal,


Prairie Mining Ltd has executed an investment agreement of up to AUS$83 million with CD Capital Natural Resources to develop the Lublin coal project (LCP). The transaction proceeds will fund all required work programmes to enable the company to make development decisions and complete a definitive feasibility study for the LCP.

CD Capital will become a key strategic investor in Prairie via a private placement by PDZ Holdings Pty Ltd, which is a wholly owned subsidiary of Prairie that indirectly holds the LCP, of non-interest bearing convertible loan notes with an aggregate principal amount of AUS$15 million to CD Capital, which can be exchanged into common shares in Prairie at AUS$0.335 per share.

The transaction will also include the grant of unlisted options in Prairie for a further AUS$13 million once exercised and a further priority right to provide the Company or its subsidiaries with capital of AUS$55 million for any future capital raising (equity or debt) by Prairie for the development of the LCP.

Prairie’s CEO, Ben Stoikovich, commented: “We are delighted to welcome CD Capital, as a strategic, long-term investor and shareholder in the company. They are an experienced and well-funded natural resources private equity fund that successfully identify and invest in world-class mining and resource assets. Their significant investment in the Lublin coal project is testament to the project’s outstanding fundamentals and potential and provides the company with a solid base to progress rapidly towards development”.

CD Capital’s Founder and CIO, Carmel Daniele, said: “This investment is an exciting opportunity to expand and develop the Lublin coal project into a world class resource. It is a high quality project where we can achieve our investment mandate through a strategic partnership of our deep industry expertise with the experienced and committed Prairie management team.”

Edited from press relase by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/exploration-and-development/21072015/cd-capital-committed-to-helping-develop-prairies-lublin-coal-project-2592/


 

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