By Esmarie Iannucci

January 20, 2021 - Coal developer Allegiance Coal has raised a further A$2 million through the issue of convertible notes under a A$8 million convertible note arrangement with Mercer Street Global Opportunity Fund, to bring forward production at its New Elk mine, Colorado.

The total value of funds raised under the note to date now stands at A$5 million.

The ASX-listed Allegiance said on Wednesday that the company was now working to bring forward production at New Elk to take advantage of the immediate strong demand for US coking coals on the seaborne market.

While production is currently still targeted for June this year, the date is under review.

Allegiance at the end of December unveiled the startup mine plan for the New Elk project, which would see the company mine 22.2 million tonnes of saleable coal reserves over a 24-year mine life.

The project would require a startup capital investment of $17.7 million, with total all-in operating costs estimated at $81.3/t, Allegiance said at the end of December.