Dwyka sources $21.3m for coal projects

West Perth based Dwyka Resources Ltd has completed a capital raising of $21.3 million to finance exploration and development of its Daguma and Bonanza coal projects.

Full announcement below:

The directors of Dwyka are pleased to announce that the Company has successfully completed a capital raising of GBP10.3m (A$21.3m) to finance its interests in the Daguma and Bonanza Coal Projects and related exploration and development costs.
On 7 May 2008 the Company announced that it has entered into an option giving it the ability to acquire an interest in the Daguma and Bonanza coal deposits located on the Philippines island of Mindanao (collectively, the 'Project'), and a funding requirement to finance acquisition and other costs.
Pursuant to the terms of a placing agreement, Ambrian Partners Limited as broker to the Company has conditionally placed 39,745,500 fully paid ordinary shares (the 'Placing Shares') at a placing price of 26 pence per Placing Share with selected institutional investors to raise gross proceeds of approximately £10.3 million (A$21.3 million).
The proceeds of the Placing will primarily be used to fund Project costs including initial option exercise expenses to give Dwyka a 30% interest in the Project, costs related to further exploration and drilling, equipment purchases and staffing.
Commitments have been received in respect of all of the Placing Shares.

The Placing is conditional on inter alia, the approval of the Company's shareholders in general meeting and
the admission of the Placing Shares to trading on the AIM Market of the London Stock Exchange. Dwyka will release an explanatory notice of meeting (as required by the ASX) containing resolutions to approve the Placing in due course.
Dwyka CEO Melissa Sturgess, commenting on the Placing, said: "We are absolutely delighted with the level of interest shown in the Daguma and Bonanza Coal Projects. The financing has closed ahead of the scheduled time and we look forward to bringing shareholders early news of our progress on this project."