ASF Group raises $6.3M for working capital
ASF Group (ASX: AFA)
has raised $6.3 million from its one for two non pro-rata
non-renounceable rights issue for working capital and to fund future
investment opportunities.
It received acceptances for 63,078,685
new shares, or about 38.63% of the total 163,303,144 shares priced at
$0.10 each on offer.
The shortfall of 100,224,459 shares, which
was not underwritten, will not be placed with any other shareholders or
third parties.
Recent activities
The
China-Australian investment house had early this month reached formal
agreements to acquire a 68.205% equity interest in Civil & Mining
Resources for $1,079,270.50 in cash.
This gives ASF exposure
to four Exploration Permits for Coal and 22 applications for EPCs
covering about 14,182 square kilometres throughout all major
coal-bearing basins in Queensland.
These are prospective for
coking, PCI and thermal coal. They are also situated in close proximity
to operating mines, infrastructure and proven economic coal resources
and offer potentially immediate to longer-term development timeframes.
Separately,
ASF has lodged a bid with its strategic partners to develop the new
Broadwater Marine Project, a cruise ship terminal and casino at
Broadwater on the Gold Coast.
The Broadwater Marine Project is a
joint initiative of the Queensland Government and Gold Coast City
Council seeking investments to deliver an integrated tourism development
in Queensland.
The development is also likely to contain a
hotel, casino, marina and super yacht facilities, retail entertainment,
hospitality, community open space, recreation facilities and a mix of
residential development.
These have the potential to boost
tourist visitation, increasing expenditure into the state and local
economies and creating jobs.
ASF’s partners are China
Communications Construction Company - third largest construction company
in the world, Guangzhou Dredging Co Ltd and China State Construction
Engineering Corporation Limited.
Together, they form one of two consortia bidding for the project.
Analysis
ASF Group is unique among ASX-listed public companies in Australia as a creator
and facilitator of two-way cross-border investments, trade and
technology transfers between China and Australia.
The company’s
investments have been made with a medium to long-term perspective with a
view to assisting significant value creation in the investee companies.
Investmetnts may be realised from time to time when it is appropriate
and beneficial to do so.
These include its recent move to take a
68.205% equity interest in Civil & Mining Resources, giving it
exposure to coal assets in Queensland as well as its bid for the
Broadwater Marine Project on the gold coast.
The additional funds will allow it to continue with this strategy.
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