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28/03/2012

Strategic Natural Resources has “huge potential” as a coal producer

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Additional Information
Market: AIM
Sector: General Mining - Coal
EPIC: SNRP
Latest Price: 20.38p  (1.90% Ascending)
52-week High: 33.38p
52-week Low: 11.13p
Market Cap: 34.67M
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Strategic Natural Resources
www.snrplc.co.uk

SNR intends to develop, own and manage natural resource extraction enterprises in southern Africa. SNR will concentrate, initially, on managing the development of and the investment in the Elitheni Mine, in the Gubahoek/Macubeni area of the Eastern Cape. Further opportunities both in South Africa itself and elsewhere in the southern part of the continent will be followed up as they arise. The company’s main country of operation is the Republic of South Africa.

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Strategic Natural Resources announces £1.9 mln placing to bolster plans for Elitheni coal project

25th Aug 2011, 8:23 am by Giles Gwinnett and Jamie Ashcroft Following today's placing Cooch will subsequently own 25 million shares, which represents a 20.99 per cent of SNRP's issued share capital

Strategic Natural Resources (LON:SNRP) has bolstered its plans to supply coal from its Elitheni coal project in South Africa with a new £1.9 million share placing.

The company's largest shareholder - Cooch 1095 Ltd - is acquiring all 10 million shares issued through the placing, which was priced at 19 pence a share - a 38 per cent premium to yesterday's closing price of 13.75 pence.

Following today's placing, Cooch will own 25 million shares, which represents a 20.99 per cent of SNRP's issued share capital.

SNR said the placing will be completed in two tranches.The first tranche of £1.3 million, through the issue of 6.84 million shares, has already been received.

The second tranche of £600,000, through the issue of 3.15 mln shares, is expected within 15 working days.

The firm says the net proceeds will be used to buy capital equipment to further advance its plans for the beginning of underground mining at the Elitheni mine, which when coupled with the initial opencast production, will ensure that initial sufficient tonnages of mined product are available for supply.

Two months ago, SNR told investors that it is looking forward to June 2012, when its first coal will have been mined, washed and delivered to port for its first shipment under the Trasteel contract.

In early April this year the firm revealed that it had signed an off-take deal with Swiss-based Trasteel International for its Elitheni coal project.

Chief executive of SNRP David Nel said today: "We are very grateful for the continuing support of Cooch, demonstrated by the fact that this subscription is at a substantial premium to the current share price. The net proceeds of the placing will ensure that we are able to procure long lead items that are required to enable the delivery of our first tonnes to Trasteel.

"The company continues to develop its longer term financing strategy and, as reported in the chairman's statement in the company's annual report, we expect to be in a position to make an announcement updating shareholders on our financing plan in the near future. This interim placing of £1.9 million merely ensures that we will not lose momentum in terms of our commitments to Trasteel."

As a condition of the placing, Cooch is entitled to appoint one representative to SNR's board, it added.

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