Allegiance raises A$30m for Alabama mine buy

ASX-listed Allegiance Coal will raise A$30-million through a share placement to institutional and professional investors to fund the acquisition of the Short Creek mine, in Alabama, and to bring the project into production.

Allegiance on Thursday announced that it had entered into an agreement with Drummond Coal to acquire the Short Creek mine for $4.4-million in cash and $11.5-million to replace the reclamation bond with the state of Alabama.