Cougar Energy (ASX: CXY) has raised $719,674 to advance Scoping Study work for its Mackenzie PCI Coal Project in the Bowen Basin, Queensland, where it had earlier this month delivered a maiden JORC Inferred Resource of 201 million tonnes.
Mackenzie is located between the producing Jellinbah and Yarrabee open cut mines that are long-term producers of PCI grade export coal.
Cougar had raised the funds through a placement of 239,891,357 shares priced at $0.003 to sophisticated and professional investors, including clients of lead manager and arranger BW Equities.
It adds a number of new Australian institutions and sophisticated investors to the company's share register.
"The successful capital raising, following the Mackenzie maiden JORC resource announcement and the company's discontinuation of the Kingaroy Civil actions, supports the board's strategy for the company," managing director Rob Neill said.
Mackenzie PCI Coal Project
The first phase exploration program completed last month at Mackenzie had "exceeded expectations", defining not only a sizeable resource but also confirming that the coal was of PCI quality.
Notably, the Resource covers 70% of the deposit modelled, leaving room for further upside.
Phase 1 of the field work consisted of 3 holes (with data available on a further 4 previously drilled holes along the western edge of the tenement) and concentrated on the southern section of the EPC which covers approximately 60% of the 2,200ha project area.
A total of 2,197 metres was drilled including 262 metres of HQ size core. The coal resources are at moderate depth and range from a minimum of 283m in hole CED002 to a maximum depth at the base of the sequence of 451m in hole CED003.
The company has several options to advance Mackenzie including a direct sale of the asset to Jellinbah and Yarrabee or a sale to other companies in the region.
Also being considered is a farm-in of some sort or royalty agreements.
Notably, Cougar has the potential to offtake coal to Jellinbah and Yarrabee, which are both upgrading their facilities.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.