9th Feb 2015 08:54
LONDON (Alliance News) - Oracle Coalfields PLC Monday said it is raising GBP3.4 million in equity primarily to take the development of its lignite coal mine project in the south-eastern Sindh Province of Pakistan to implementation.
In addition, the group said it has submitted a performance guarantee to Sindh government authorities and finalised a tenancy agreement on "suitable" office premises in Karachi, as it looks to have its mining lease restored following its cancellation by the Secretary of the Energy Department of the Sindh government in December.
In a statement, the company said the placing is priced at 0.65 pence per share. Oracle Coalfields shares were down 10% at 0.740 pence on Monday.
Oracle Coalfields has already raised GBP247,000 before expenses under fundraising authority already granted by shareholders at its annual meeting last year. In order to raise the further GBP3.1 million before expenses, the company is seeking further shareholder approval.
The company said new and existing investors are participating in the placing, including directors and senior employees.
Also, directors and senior employees are to take up 4.4 million shares in the placing instead of receiving GBP28,529 of remuneration.
Overall, the total number of shares proposed to be placed will represent 57.3% of the company.
By Samuel Agini; [email protected]; @samuelagini
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