Australia's Allegiance Coal slides on discounted placement to buy U.S. mine

Allegiance Coal

21/10/2021 01:31

** Shares of Allegiance Coal Ltd  AHQ.AX  slide as much as
15.5% to A$0.49, marking their biggest intraday pct fall since
April 1, 2020
    ** Coal miner enters into an agreement with Drummond Coal
Inc to acquire Short Creek Mine near Birmingham, Alabama in the
United States  urn:newsml:reuters.com:*:nASX6Lm8zd
    ** AHQ says has raised A$30 mln ($22.56 mln) via placement
to fund acquisition
    ** Placement at an issue price of A$0.50 per share, a ~14%
discount to stock's closing price on Oct. 18, when it last
traded
    ** Co to pay $4.4 mln to Drummond to acquire the land and
$11.5 mln to Alabama state to replace the reclamation bond
    ** A reclamation bond is used to guarantee that land
affected by mining is returned to its pre-mining condition
    ** Stock hits its lowest point since May 27  
    ** About 627,000 shares change hands, vs the 30-day average
volume of ~333,000 shares
    ** Stock up 45% this year, as of last close


($1 = 1.3296 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))