IPO Watch: Coking coal player Montem heads for the ASX in $20m float
Coking coal explorer Montem Resources has launched an initial public offering to raise $15 million to $20 million ahead of an ASX listing.
The Canada-focused miner is offering 40 million shares at 50c each to raise the cash. It plans to list September 27.
Montem owns six coking coal leases in the southern Alberta and British Columbia regions of Canada.
The leases are near mines owned by major Canadian coking coal producer Teck Resources.
Coking coal is a key ingredient in steel-making and demand is good right now.
The coking coal price is “probably the best it has been for a few years” at around $US200 a tonne, according to Domenic Martino, non-executive chairman of emerging producer Cokal (ASX:CKA).
“The price of coking coal is looking pretty good,” Mr Martino told Stockhead. “There is a great demand for [pulverised coal injection] and coking coal.”
Montem wants to restart mining at the Tent Mountain mine, which previously produced coal that was sold primarily to Japanese steel mills.
Miners at the starting line
Other explorers aspiring to light up the boards of the ASX are Coolgardie Minerals, Kingwest Resources and Tempus Resources.
Kingwest has now released a supplementary prospectus with a new target listing date of August 23 after the IPO was extended to August 13.
Nickel Mines, meanwhile, was aiming to list on the local bourse Thursday, but the company’s $200 million IPO has been delayed while it sorts out some issues with ASIC.
The Sydney-based, Indonesian explorer was co-founded by successful mining investor Norm Seckold, who will emerge with about 9 per cent of the shares and has taken up the role of executive deputy chairman.
Nickel Mines owns an 80 per cent interest in the Hengjaya Mineralindo nickel mine in Central Sulawesi.
Diamond explorer GeoCrystal was working towards a listing on Friday this week, but there has been no word as yet on whether the company has been admitted to the “Official List”.