Welsh mining company Energybuild floated on AIM this week securing a market capitalisation of £26m and raising £15m.
The funds will be used to develop the Aberpergwm Mine and adjoining Treforgan underground coal mines in the Neath and Dulais Valley's of South Wales.
The mines have a proven 7.6m tonnes of coal although it is believed that there will be at least 43.8m and could be as much as 112.2m.
The company is also developing the Nant y Mynnydd opencast mine which is currently producing 2,000-3,000 tonnes a week.
Energybuild chairman Colin Cooke said: “The Aberpergwm and Treforgan mines in Wales have always shown great potential as producing entities.
“With identified and verified high quality anthracite reserves, off-take agreements in place with leading corporates and an experienced operational team lead by Rhidian Davies, I believe the group is ideally positioned to provide investors with future asset value appreciation and a significant yield on their investment.
“The Welsh mining industry has changed dramatically over the last 25 years but the fundamentals for operational success remain highly favourable with the infrastructure and operational knowledge in the region.
“This, in tandem with the rising coal price and our dedicated work programme, gives me great confidence in the group and its ability to create value for shareholders.”
Seymour Pierce acted as nominated adviser and broker on the deal.
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