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New Hope commits A$105 million to Maxwell Mine project development

Coal mining company New Hope is looking to increase its stake in Malabar Resources by committing up to A$105m ($68.4m) in an equity-raising initiative.

In a stock exchange filing, the coal miner said that it “has committed to take up to A$105 million of a minimum A$160 million institutional placement equity raising launched by Malabar Resources Limited (Malabar) earlier today (Malabar Equity Raise).”

New Hope will use its current cash reserves to fund the commitment.

The Malabar Equity Raise, which seeks a minimum of A$160m, has drawn a firm placement allocation of A$76m from New Hope, which will increase its shareholding from 15% to a projected 19.9%.

In addition to the firm placement, New Hope agreed to a conditional placement allocation of A$29m, subject to approval from Malabar shareholders.