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Stanmore said it would issue about 631 million shares through a proposed entitlement offer at A$1.10 per share, a 12% discount to stock’s last close.

The $1.35 billion deal, which became unconditional last month, gives the Brisbane, Australia-based coal explorer majority control of BMC’s two open-cut metallurgical coal mines in the Bowen Basin in Queensland.

Stanmore forecast output from the combined business of between 5.9 million tonnes (mt) and 6.5 mt of saleable coal on a 100% basis for the six months ended Dec. 31. That compares with saleable coal production of 2.1 mt logged in fiscal 2021.

Stanmore said its majority shareholder, Golden Energy and Resources Ltd, will subscribe for $300 million worth of shares.