Carbon Energy raises AUD 4 million to advance Mongolian UCG project

Carbon Energy has completed an entitlements issue to existing shareholders for AUD 2.64 million and a placement to Holder East Capital for an additional AUD 1 million to fund work at its Underground Coal Gasification project in Mongolia.

New shares were offered at AUD 0.02 on a 1 for 2 basis with a free attaching option exercisable at AUD 0.06 expiring on August 31st 2016. Attracting a cornerstone investor in Holder East and the fact that all directors have taken up their full entitlements, should give investors added confidence in Carbon"s operations.

Funds will also be directed towards a rehabilitation plan for Bloodwood Creek, furthering technology licensing agreements and monetizing its Surat Basin coal leases. There was a shortfall of 261,445,608 new shares with the lead manager for the issue working to place.

Source:CoalGuru