Mining Projects Group has completed the acquisition of Delcarmen Energy and expects to soon start an initial drilling program over its two exploration permits for coal applications to determine their potential for both thermal and coking coal.
EPC 2527 and EPC 2528 are believed to hold this coal potential within the Triassic-age Esk and Gayndah Formations. These are the target of projects such as Stanwell Corporation Kunioon deposit with measured open cut resource of 435 million tonnes of thermal coal, Rio Tinto Yarraman deposit just south of Tarong power Station with measured open cut of 54 million tonnes of thermal coal; and Cockatoo Coal Taabinga deposit with measured open cut of 35 million tonnes of thermal coal.
The permits also give Mining Projects Group a footprint within a coal Basin with coal discoveries, deposits and mines with an existing power station and historical rail infrastructure that may require reconstruction and upgrading dissecting the area which is 170 kilometres from Brisbane.
Mining Projects Group had acquired Delcarmen Energy for about AUD 1 million. This includes paying the sellers 12.5 million shares and AUD 200,000 on the granting of each of the two permits.
The company had last month unveiled plans to raise AUD 1.05 million through a fully underwritten non-renounceable rights issue that would go towards payments to the vendors of Delcarmen.
The company is offering shareholders four new ordinary shares at USD 0.01 per share for every five shares held. Each new share comes with a free attaching option exercisable at USD 0.015 per share expiring on November 30 2014.
Peregrine Corporate has agreed to underwrite the rights issue to USD 1.05 million for a fee of 6% of the value of the total shares underwritten. In addition, two of Mining Project Group directors, Mr Bryan Frost and Mr Richard Revelins have agreed to sub-underwrite the shortfall up to a total of USD 300,000. Frost and Revelins are also directors and shareholders of Peregrine.
This rights issue takes the place of the proposed share placement to professional and sophisticated investors that was approved by shareholders at the company General Meeting on May 18 2012.
Remaining proceeds will also fund exploration activity on the two permits.
Source - Proactive Investors
(www.coalguru.com)
