Hunnu Coal Limited (Company) is very pleased to announce the raising of AUD40 million (US $39.1 million) through a placement to the institutional and sophisticated investors to accelerate the exploration and development of the Company’s coking and thermal coal projects in Mongolia.
The company has secured the firm commitments from subscribers to participate in a placement by which the Company will raise AUD40 million (before costs) through the issue of 50 million shares at an issue price of 80 cents each (placement). Azure Capital Limited and CPS Securities have been appointed lead Managers for the Placement.
Funds raised pursuant to the Placement and Offer will be used to:
- Continue the aggressive drilling program at the Tsant Uul Coking Coal Project which currently has eight drilling rigs operating
- Continue aggressive drilling program at the Unst Khudag Thermal Coal Project which currently has six drilling rigs operating
- Calculation of JORC resources at both Unst Khudag and Tsant Uul
- Fast track development of both Tsant Uul and Khudag
- Acquire additional coking projects
The placement will be issued in two tranches. The first tranche of 24 million shares will be issued on October 72, 2010. The issue of the second tranche of 26 million shares is conditional on shareholders approving the issue of those shares at a general meeting of the Company to be held as soon as practicable.
|Dirlling Programs & JORC calculations||20|
|Development and Infrastructure Spending||10|
|Expenses of the Placement and the Offer||2|