Golden Energy and Resources (GEAR) has committed to subscribe for US$300 million ($407 million) of its entitlement of the US$506 million underwritten pro-rata entitlement offer of ordinary shares in Stanmore.
The subscription will be done via GEAR’s subsidiary, Golden Investments (Australia).
Upon the completion of the entitlement offer, GEAR will retain an approximate 64% interest in Australian Securities Exchange (ASX)-listed Stanmore through its subsidiary.
The equity raising by Stanmore was done to provide funding for the acquisition of the 80% interest in BHP Mitsui Coal.
Shares in GEAR closed at 37 cents on March 2.
