Jameson Resources has raised A$3.5 million through a two-tranche placement to fund environmental approvals and Indigenous engagement for its Crown Mountain Hard Coking Coal Project in Canada.
- A$3.5 million capital raising via two-tranche share placement
- Placement priced at A$0.035 per share, a 12.5% discount to recent closing price
- Funds allocated to environmental assessment, Indigenous consultations, and corporate costs
- Directors to subscribe for shares subject to shareholder approval
- Euroz Hartleys acted as lead manager for the placement
Capital Raising to Support Project Progress
Jameson Resources Limited (ASX: JAL) has announced a capital raising of approximately A$3.5 million through a two-tranche placement of new shares. The funds will primarily support the ongoing environmental approval process and Indigenous engagement efforts for the Crown Mountain Hard Coking Coal Project, located in British Columbia, Canada.
The placement involves issuing around 100 million new fully paid ordinary shares at A$0.035 each, representing a 12.5% discount to the closing share price on 21 May 2025. Tranche 1, expected to settle and be allotted in early June, will issue approximately 98.4 million shares under existing placement capacity. Tranche 2 involves the issuance of 1.6 million shares to company directors, subject to shareholder approval.
Strategic Use of Funds
The capital raised will be directed towards completing technical studies in response to information requests from Indigenous Nations, regulators, and the public during the environmental assessment review. It will also fund the finalisation of a revised environmental assessment for submission to regulators, ongoing Indigenous engagement, and negotiation of long-term partnership agreements.
Additional uses include project management, administrative costs related to the company’s Canadian subsidiary NWP Coal Canada Limited, and general corporate working capital. This funding is critical as Jameson advances its strategic coal projects in a region pivotal to steelmaking coal exports.
Leadership Commitment and Market Confidence
Notably, the company’s Chair Nicole Hollows, Non-Executive Director Steve Van Barneveld, and Managing Director Michael Gray have committed to subscribing for shares in the placement, signaling strong insider confidence. Their participation is pending shareholder approval, reflecting governance standards and alignment with shareholder interests.
Chair Nicole Hollows highlighted the company’s optimism, citing recent supportive signals from both provincial and Canadian federal governments towards resource development. This backdrop, combined with updated project economics, underpins Jameson’s confidence in advancing the Crown Mountain project.
Broader Industry Context
Jameson Resources operates in a competitive coal sector, focusing on hard coking coal essential for steel production. Its Crown Mountain project is strategically located near existing mines and export infrastructure, enhancing its potential market access. The company’s partnership with Bathurst Resources Limited, a significant coal operator in New Zealand, further strengthens its position.
Euroz Hartleys served as lead manager for the placement, underscoring the transaction’s market credibility. The successful capital raise provides Jameson with the financial runway to navigate regulatory hurdles and Indigenous partnerships, both critical for project advancement in today’s resource development landscape.
Bottom Line?
Jameson’s fresh capital injection sets the stage for key regulatory milestones, but shareholder approval and ongoing Indigenous negotiations remain pivotal.
Questions in the middle?
- Will shareholder approval for director share issuance be secured without delay?
- How will ongoing Indigenous engagement shape the final environmental assessment outcomes?
- What impact will the capital raising have on Jameson’s share price and dilution concerns?