Equatorial Coal Ltd
(ASX:EQX) has announced plans to raise $25.6 million through a placement to institutional investors.
The minerals explorer says it will place 14.2 million shares at $1.80 each, largely picked up by two European asset managers.
Equatorial Coal plans to use the funds to accelerate its drilling and exploration activities at its iron ore projects in the Republic of Congo.
Managing director and CEO John Welborn says the placement to institutional investors reinforces the high prospects of Equatorial’s tenements as well as the importance of its access to rail and deep water port infrastructure.
Equatorial Coal booked a net loss of just over $1 million in the 2010 financial year.
