05/12/2011 - 11:13

C @ reaches lowered capital raising target

05/12/2011 - 11:13


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C @ reaches lowered capital raising target

C @ today reached its minimum capital raising target of $14 million, after slashing its price by half and lowering its goal by $6 million last week.

The capital raised will see the coal explorer fund the acquisition of eight coal licenses in Mongolia.

The company previously sought a minimum of $20 million from the issue of shares priced at 5 cents per chare.

C @ announced last week it would cut the price of the share issue to 2.5 cents and seek the lowered amount instead, indicative of the tough current sharemarket.

Managing director Mark Earley said the company was now fully funded to complete the acquisition of the coal licences in Mongolia and undertake its development program targeting an initial JORC compliant resource in 2012.

Canaccord BGF and Renaissance Capital were joint lead managers, while Azure Capital acted as corporate adviser.

In a statement C @ said shareholders still had the opportunity to participate in the priority offer, which provides 6 million shares to shareholders and 50 cents each post-consolidation to raise a further $3 million.

The offer closes at 5pm WST on 8 December.

C @’s stock are currently suspended from trading on the ASX, having last traded at 4.2 cents.


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