Gujarat NRE Coking Coal Limited announced that it has finalized a further Off Take Agreement with Jindal Steel & Power Limited (JSPL) whereby JSPL would have the option to acquire an additional 200,000 tonnes of Run of Mine coal annually from the Company at a benchmark linked market price. As part of the agreement, the Company will issue and allot a further 30,000,000 fully paid ordinary shares to Jindal Steel & Power (Mauritius) Limited at $0.25 per share raising USD 7,500,000. Based on the last traded data of the GNM scrip, this placement represnts a premium of approximately 47% to the current market price. The allotment of 30 million fully paid shares to Jindal Steel & Power (Mauritius) Limited will be done under the limit available to the Company under ASX listing Rule 7.1.
Arun Kumar Jagatramka, Executive Chairman of Company said:
We are extremely pleased in negotiating the further off take agreement and concluding the placement as it strengthens the existing relationship between the two companies. The securing strong off-take partners is important as we continue the expansion of our two mines to our planned levels of over 6 million tonne per annum and the placement funds will be utilised in our expansion project.