The company has raised £621,544 before costs by placing more than 27 million shares at a price of 23p to a new investors and the company’s joint broker, Brandon Hill.
Brandon Hill exercised warrants held over 23 million ordinary shares at a price of 0.65p to raise £150,000.
The company said the proceeds of the placing and the warrant exercise will be used to repay the drawn principal and outstanding interest balance on the loan facility made available by Brandon Hill of £471,544, and will provide general working capital as the company looks to move towards financial close on a memorandum of understanding with two major Chinese state-owned companies.
The MoU with Sichuan Provincial Investment Group Co. Limited (SCIG) and PowerChina International Group Limited records the intention to proceed to a formal agreement to collaborate in setting up, constructing, owning and operating the company’s flagship Thar project.
The project is a combined lignite coal mine and mine mouth power plant located in Block VI of the Thar desert in the south-eastern Sindh Province of Pakistan.