White Energy Company Ltd. has signed binding sale and purchase agreements to acquire two major coal developments in the US and Queensland, alongside a proposed AU$15 million capital raising.
Under the binding agreements, White Energy will acquire 100 per cent of Essential Global Resources LLC (EGR) for an implied value of AU$5 million through the issue of 83.33 million shares at 6 cents per share.
EGR holds the Lolley No. 1 underground metallurgical coal project in Alabama, USA, which includes an on-site preparation plant and direct rail and barge access.
Simultaneously, the company will acquire Oceltip Coal 2 Pty Ltd (OC2) for AU$4.5 million.
OC2 is in the process of securing the Tin Hut Creek project, covering roughly 4,000 square kilometres across Queensland’s Surat Basin.
Both acquisitions involve vendor entities associated with mining investor Nathan Tinkler. Following completion, Tinkler is slated to join the board as Executive Chairman and Managing Director, alongside non-executive directors Brian Flannery, Mike Chapman, and Keith Whitehouse.
To fund development and working capital, White Energy has secured shareholder approval to execute a capital raising of up to 250 million shares at 6 cents per share to raise up to AU$15 million before costs.
White Energy’s board noted the acquisitions complement its existing energy technology and mineral exploration footprint, expanding its liquidity and providing exposure to high-value metallurgical and thermal coal markets.
“The proposed acquisition strategy is consistent with White Energy’s current and historical involvement in coal-related assets, coal upgrading technologies and energy infrastructure initiatives,” the company stated, noting the transactions will significantly broaden its free float.
Completion of both interdependent transactions remains subject to final conditions precedent and settlement of the capital raise, which the company expects to conclude in September.