Difficult sharemarket conditions have come home to roost at C @, with the Mongolia-focused coal explorer slashing the price of its capital raising activities by half.
C @ announced before its annual meeting today that it would now seek to raise a minimum of $14 million from a share issue priced at 2.5 cents per share.
The company had previously sought to seek a minimum of $20 million and up to $28 million, from the issue of shares priced at 5 cents per share.
C @ is seeking the funds to finalise an agreement to acquire all of the shares in Peabody subsidiary BDBL, the entity that owns eight highly prospective Mongolian coal tenements, for $US7.8 million.
“The company, together with the joint lead managers, consider that the terms of the capital raising must be revised to ensure that the company is able to raise sufficient funds to complete the acquisition and the change of activities,” C @ said in a statement.
Meanwhile, shareholders at the meeting approved the company’s proposal to change its name to Draig Resources.
C @’s stock are currently suspended from trading on the ASX, having last traded at 4.2 cents.