Altona Resources (LON:ANR), the AIM listed Australian based energy company, announced today that it has placed 33,333,334 new ordinary shares to raise a estimated sum of £3 million. The placing shares represent 8.1% of the company's enlarged ordinary share capital. Altona also released a six month operational update covering July to December 2009.
The placing of over 33 million shares at 0.1 pence each, at 9 pence per share are intended to fund the company for over 18 months, with Altona's joint venture partner, CNOOC-NEI, a subsidiary of China National Offshore Oil Corporation. Specifically, the money will fund the the completion of the bankable feasibility study (BFS) for the Arckaringa Project. Included in the BFS will be the undertaking of key programmes such as the mine design, planning, groundwater engineering, environmental studies and technical studies. Together, these studies will provide enough information to complete the follow up engineering of the coal conversion plant and other projects, the report said. Altona Chairman Christopher Lambert commented on the fund raising:
"The fundraising is yet another considerable step towards commercialising our estimated 7.8 billion tonne coal resource. I believe the overwhelming support shown to the company over the past week is the result of a culmination of many years of solid work by Altona, which has transformed the Company's internationally significant energy asset through the agreement of the terms of a joint venture with CNOOC-NEI. We believe that with the working capital secured, and CNOOC-NEI's funding and operation of theBFS, Altona has de-risked the project both financially and technically as muchas is possible at this stage of our development and as a result the Company isnow well positioned for this next key phase towards the development of the Arckaringa Project. The Company achieved a placing price significantly higher than that anticipated at the start of the marketing roadshow and prior to the announcement of the BG Group agreement with CNOOC to supply natural gas to China with Australian Foreign Investment Review Board approval. On our current projections, we are now funded for over the next 18 months, by which point I expect the project to have evolved considerably. I would like to thank both our existing and new investors for their endorsement of the Arckaringa Project and I look forward to…
