Jameson, which is chaired by former Macarthur Coal chief executive, Nicole Hollows, said it had a binding commitment from two of Tinkler’s companies, Oceltip 1 and Oceltip 2 for a placement of 86.6 million shares for $10 million, at a 70 per cent premium over the weighted price of its shares over 15 trading days.

The deal sent Jameson’s shares on a run to a high of 11 cents just below the placement price of 11.5 cents, before dropping back to 9 cents, which was still an increase of 38 per cent.

Jameson said the funds would be used to progress the Crown Mountain coal project in Canada.

Tinkler said there was distinct lack of quality metallurgical coal projects being developed.

“The Elk Valley coal measures in British Colombia where Crown Mountain is located rank alongside the Moranbah coal measures in Queensland Bowen Basin as two leading sources of premium, low volatile hard coking coal keenly sought by the world’s leading steelmakers,” Tinkler said.

“I have followed the progress of the development of Crown Mountain for a number of years and am very satisfied that the Jameson management team has progressed the project to being clearly one of the most advanced steelmaking coal development projects in Canada.”

Tinkler said he had worked alongside Hollows and Jameson managing director Michael Gray on the development of the Middlemount coal mine in central Queensland.

Gray said the funds from Tinkler would allow the company to progress the approvals and permitting for the Crown Mountain project.

Hollows also said Tinkler had clearly demonstrated he had the ability to identify quality undervalued coal projects and progress development plans.