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Coal Mining Coal Markets New Hope Corp NHC

New Hope boosts stake in Malabar Resources with $180M equity raise

New Hope Corporation Limited (ASX: NHC) (“New Hope”) is pleased to announce that it has entered into agreements to increase its shareholding in Malabar Resources Limited (ASX: MBA) (“Malabar”) from approximately 15% to approximately 19.9%.

The increase in New Hope’s shareholding will be achieved through a participation in a $20 million equity raising by Malabar (the “Equity Raising”). New Hope will subscribe for approximately $5 million of new ordinary shares in Malabar (the “New Shares”) at an issue price of $0.10 per share, representing a 20% discount to the last closing price of Malabar’s shares on 16 February 2024.

The settlement of the New Shares will occur in two tranches:

  • Tranche 1: $2.5 million to be settled on 23 February 2024, upon satisfaction of customary conditions precedent.
  • Tranche 2: $2.5 million to be settled on 21 March 2024, subject to shareholder approval and satisfaction of customary conditions precedent.

New Hope will fund the settlement of the New Shares from its existing cash resources.

Following completion of the Equity Raising, New Hope will hold approximately 250 million Malabar shares, representing approximately 19.9% of Malabar’s issued capital.

New Hope’s investment in Malabar reflects its continued belief in the long-term potential of the company’s NSW thermal coal assets and its confidence in Malabar’s management team to deliver value for shareholders.


on 7 February 2024 that Malabar Resources Limited (Malabar) has successfully completed an upsized ~A180m Equity Raise (Equity Raise) which will result in the Company’s total ordinary shareholding interest in Malabar increasing from 15% to 19.9%. Malabar have advised that settlement of the Company’s commitment to the Equity Raise will occur in tranches to manage applicable regulatory approvals processes, comprising: Tranche 1: 42,073,773 Malabar ordinary shares at A$1.80 per share for a subscription amount of A$75,732,791 with settlement scheduled to occur on 23 February 2024 and allotment of new Malabar ordinary shares expected to be 27 February 2024. Tranche 2: following conclusion of regulatory approval processes by foreign investors in Malabar and final calculation of the balance new Malabar ordinary shares to be issued to complete the Equity Raise, Malabar will allot to the Company such number of ordinary shares in Malabar to maintain the Company’s 19.9% interest consistent with the Company’s firm commitment to the Equity Raise. The Company presently estimates that up to approximately 2.2 million Malabar ordinary shares at A$1.80 per share for a subscription amount of approximately A$4 million may be issued to the Company. The Company will fund the settlement tranches from existing cash.