Riversdale Mining Ltd (ASX:RIV) has announced it will fund its Benga coal project by selling $337 million of new shares.
The fixed offer price of $9.40 a share will be utilised to facilitate the accelerated development of the coal project in Mozambique.
Riversdale says the capital raising will comprise of a $102 million fully-underwritten institutional placement, and an entitlement offer to all eligible shareholders.
The entitlement offer will consist of an institutional component of around $165 million and a retail component of $70 million.
Executive Chaiman Michael O'Keeffe says securing the funds through the raising to fast track Benga's development is intended to maximise the company's ability to acquire infrastructure capacity as the Benga coal mine is developed.
Riversdale Mining reported a profit in fiscal 2009, however significantly lower than the previous year.
RIV Price at posting:
$10.20 Sentiment: None Disclosure: Held
