12th Nov 2013 09:49
LONDON (Alliance News) - Cluff Natural Resources PLC Tuesday said it has conditionally raised GBP2 million in a share placing to develop its UK deep underground coal gasification portfolio.
The investment company, which acquires and invests in oil and gas mining projects, said it raised the money through a placing of 66.7 million shares at a price of 3.00 pence per share, to new and existing institutional investors as well as a number of private investors.
Cluff Natural Resources said its has an estimated 1.75 billion tonnes in total coal resource.
The placement will increase Cluff's total shares by 75% from 88.3 million currently.
Chairman and Chief Executive Algy Cluff subscribe to 500,000 shares, raising his holding to 11.6 million shares or 7.5% of the enlarged total. Deputy Chairman Nicholas Berry will subscribe to 666,666 shares, raising his total to 2.5 million, and non-executive director William de la Warr will subscribe for 500,000, increases his holding to 900,000.
Cluff also said that major shareholder Mercantile Investment Trust PLC will subscribe for 6.7 million shares.
The new shares will begin trading on AIM on November 29, subject to the passing of a resolution by shareholders at a meeting set for November 28.
The company's existing shares were amongst the biggest decliners on AIM Tuesday morning, down 19% at 3.15 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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