Blumont Group to acquire 15% stake in coal miner Resource Generation
MAINBOARD-listed Blumont Group will be investing about A$22 million in coal miner Resource Generation (RES) as part of efforts to diversify its business.
Blumont said on Monday that it will subscribe for new shares in the Australian Securities Exchange-listed firm for A$0.22 per share. The cash acquisition will be funded entirely with internal resources.
Following the acquisition, Blumont will hold a 15 per cent share in the company.
The proceeds will also be used to further develop RES' Boikarabelo coal mine in Waterberg, South Africa.