African Energy plans $4.5m raising

West Perth-based junior African Energy Resources has announced plans to raise $4.5 million through a share placement and rights issue to advance its coal and power projects in Botswana.

African Energy will issue about 17.3 million shares at 8.5 cents each in a share placement to raise $1.5 million, with major shareholder Sentient Executive taking the bulk of the shares to lift its stake in the company to 19.9 per cent.

Entities associated with the directors have meanwhile agreed to purchase 2.4 million shares in the placement.

The company will also aim to raise up to $3 million through a non-renounceable entitlement issue on the same terms as the placement.

African Energy is currently focused on completing feasibility studies at its Sese integrated power station project and Mmamabula West coal project in Botswana.

Shares in the company were trading 6.8 per cent lower at 8.2 cents at 12:16pm WST.