HMS Bergbau AG has secured debt financing of EUR 8 million in the context of a private placement to finance its operating activities and the project development of its subsidiary Silesian Coal International Group of Companies S.A. The bond was fully subscribed by a German investment entity. The investment entity has the option to convert its loan into shares of Silesian Coal International Group of Companies S.A. held by HMS Bergbau AG in lieu of repaying the loan upon maturity. HMS Bergbau AG plans to use the funds primarily to finance the operating activities of Silesian Coal International Group of Companies S.A. in addition to the expansion of its own business processes. The companies agreed not to disclose further details of the agreement. Silesian Coal plans to develop the identified potential coal deposit of 2.2 billion tonnes in situ - of which around 672 million tonnes of high-quality coal were identified as recoverable according to the JORC standard - at low cost using existing infrastructure. Once the mining licence has been granted, the aim is to produce around 1.5 million tonnes of coking coal annually. Coking coal has been defined as a critical raw material by the European Union since 2014.