Allegiance Coal (ASX:AHQ) plans upcoming capital raise

Petra

The Market Herald

Allegiance Coal (AHQ) is going into the weekend in a trading halt while it plans an upcoming capital raise.

The company will remain in the halt until February 23 or when an announcement is released, whichever occurs first.

Allegiance Coal is yet to disclose how much it intends to raise or what it will do with the money.

In early February, the company appointed Bernie Mason to its board as a Non-Executive Director.

In this role he will assist in the commissioning of the New Elk Mine in Colorado and will oversee the production and delivery of coal.

Additionally, Allegiance Coal last entered a trading halt in November regarding a $7.5 million share placement.

More than 150 million shares were issued to sophisticated and professional investors at 5 cents, representing a 14.9 per cent discount to the five-day volume-weighted average price.

Once received, Allegiance Coal used the funds as working capital at the New Elk Mine, and to complete the Environmental Assessment Application for the Tenas Project in British Columbia.

Shares in AHQ last traded at 9.5 cents on February 18.