Ashurst has advised Sprint Capital Partners Ltd in its A$36 million subscription and co-operation funding agreement with Stanmore Coal Limited.
Greatgroup Investments Limited, an investment vehicle managed by Hong Kong-based Sprint Capital, has committed to subscribe for $27 million in shares and $9 million of convertible notes at the issue and conversion price of $0.675 per share. The issue and conversion price of $0.675 per share reflects an 87.5% premium to the closing price of Stanmore’s shares on the ASX on 27 June 2012 (which was A$0.36).
Greatgroup has also been appointed Stanmore’s coal marketing agent for coal from Stanmore’s Queensland projects.
According to Ashurst’s lead partner on this matter, Murray Wheater: “We were delighted to assist Sprint Capital in this strategic investment in Stanmore Coal, which has served to significantly progress Stanmore’s The Range project in the Surat Basin.”
The funds raised under this placement will be used for Stanmore’s proposed port and rail infrastructure bid bond obligations, project development and working capital requirements.
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