Cougar Energy Raises Funds To Advance Scoping Study For Mackenzie PCI Coal Project

Jul. 26, 2013 1:19 AM ET

517 Followers

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

http://www.proactiveinvestors.com.au/

Short Only

Seeking Alpha Analyst Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

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.

Analysis

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You