The proceeds will used to fund the definitive feasibility study (DFS) at the Moorlands project and pay down $5m convertible note liability associated with the acquisition of the Orion coal project in 2012.
Located 30kms north-west of Clermont, Queensland, the Moorlands is an open-cut export thermal coal project, which is expected to commence first coal production in 2016.
Currently, the mine has JORC compliant resource of 281.1 million tons, including a measured resource of 118.5 million tons and 52.7 million tons in the indicated category.
The placement is subject to Cuesta shareholder approval, and will be settled in two stages.
Following the placement, Beijing Guoli’s total investment in Cuesta will be $47m.
