A major shareholder just bought another big chunk of shares in White Energy
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There’s still plenty of activity on the share register of listed coal miner White Energy (ASX: WEC).
Late yesterday, the company advised the ASX of a large forthcoming placement.
WEC will allocate 20 million shares at 7 cents a share to raise a further $1.4 million.
The buyer? A “professional investor who is a current major shareholder,” the company said.
The announcement was released on the ASX after market close, but during trading hours shares in WEC rose by more than 8 per cent to 6.9 cents.
Settlement of the placement is scheduled for Monday March 11, and WEC said it will provide more details via an Appendix 3B once the offer has been finalised.
It’s not the first time in recent months that heavy hitters at the company have gotten active on the share register.
In November last year, directors Travers Duncan and Brian Flannery each purchased more than $2m worth of stock as part of a capital raising to fund White Energy’s legal bills.
The saga continues
Earlier this year, White Energy chalked up a small victory in its long-running legal dispute with its Indonesian joint venture partner, Bayan Resources.
The case goes all the way back to December 2011, when WEC launched legal action after it was unable to secure coal supplies from Bayan for the pair’s joint venture refinery operations in Indonesia.
The resulting standoff saw shares in White Energy plummet from an all-time high of $4.27. Since 2016, shares in the company have traded consistently below 10 cents.