Altona Resources , the Australian based energy company announced it had entered into an agreement with Tongjiang International Energy Co, a Hong Kong based investment company, to raise £11.6 million through the placing of 240 million shares.
Altona said the funds would be used to complete the final stage of the bankable feasibility study for its proposed 10 million barrel per year coal-to-liquids ("CTL") and 560MW co-power generation Arckaringa Project in South Australia.
Tongjiang is a subsidiary of Tongjiang Group which has business
interests in energy and resources primarily in China.
The transaction will be split into three tranches. Tranche 1 will see Tongjiang invest £1.045 million by taking 22 million shares at 4.75p per share by 29 February 2008. Trance 2 will see a further £2.5705 million invested in return for 53 million shares at 4.85 pence by April 15, 2008, and Tranche 3 will see a further £8.0025 million in return for 165 million shares also at 4.85 pence by 30 June 2008. Following the completion of the transactions, Tongjiang will hold 45.9% of Altona.
Shares in Altona Resources slipped 4% to 5.5 pence.