WildHorse to raise $21.8m

WildHorse Energy says it has entered into agreements to raise $21.8 million, which will be used to fund development of a newly acquired underground coal gasification project in Hungary.

The Perth-based company said it had locked in deals with institutional and sophisticated investors to carry out a placement of 64.1 million shares at 34 cents each.

Shares in WildHorse last traded at 38c before it entered a trading halt last week.

The placement was managed by a syndicate of brokers in Australia and the UK.

Net proceeds of the placement will be used for the Mecsek Hills project in Hungary, which it gained after it acquired unlisted Australian company Peak Coal late last year.

The project is located near WildHorse's Pecs uranium project.

Funds from the raising will be directed towards an initial drilling program aimed at converting the exploration target of 1.25 billion tonnes of coal into a JORC compliant resource, further exploration work, prefeasibility study and general working capital.