Jade Technologies raises S$9.6m to fund coal mining project

Jade Technologies has raised S$9.6 million to fund a coal mining project in Indonesia.

The company placed out about 134 million new ordinary shares at 7.2 Singapore cents each to three investors – a UK Fund, CC Asia Advantage Master Fund; and two private investors, Jeffrey Hing Yih Peir and Ong Boon Kheng.

For Mr Hing and Mr Ong, the issue price represents a discount of 5 percent to Jade’s weighted average price of 7.58 cents per share, based on trades done on May 14.

For CC Asia, it bought the shares at a 10 percent discount to the weighted average price of 8 cents per shares, based on trades done on May 16.

Jade said it intends to use at least S$5.4 million of the proceeds for its coal mining project in Mt Galugua in West Sumatra. The balance of about S$3.9 million will be used for general working capital purposes.

Jade’s Group President, Sam Chong Keen, said the cash injection will pave the way for Jade to build the necessary infrastructure and buy equipment to start coal mining immediately.

He said the company is on track to deliver its first offtake of between 15,000 and 30,000 metric tonnes of coking coal in the third quarter.

As a result of the placement, the company’s net tangible asset per share increased about 35 percent to 2.51 cents, while its loss per share decreased to 0.046 cents.

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