African Energy Resources has raised up to AUD 15 million through an oversubscribed placement of 30 million shares at AUD 0.50 per share to advance the Sese Coal Project in Botswana, with a view to potential development in late 2012.
The placement to institutional and sophisticated investors from Asia, Europe and Australia is testament to the quality of the Sese project and has Helmsec Global Capital Limited acting as the lead manager.
The proceeds will be used at Sese for infill drilling to Measured status, trial pit and bulk samples, Feasibility Studies, an environmental impact assessment, working capital and transaction costs.
Mr Frazer Tabeart MD of African Energy Resources told Proactive Investors that the funds enable the company to substantially de risk the project in the next 12 months through a trial pit which will provide bulk samples to allow potential customers (export and domestic/regional) to test the quality of the coal, as well as demonstrate the company's commitment to the project and its development.”
The trial pit will also give African Energy the opportunity to assess export logistics in the region.
By continuing its resource drilling programs the company will progress through an Indicated resource on the whole deposit to a Measured resource for the area, which is likely to provide the first 25 years of production.