Ormil Energy is raising up to AUD 4.36 million to fund ongoing development of its coal seam gas projects in New South Wales and Botswana and is putting in place underwriting arrangements.

Under the non-renounceable pro-rata entitlement offer, shareholders will be offered one new share priced at AUD 0.022 each for every three shares that they hold.

Ormil said it is seeking shareholder approval to enter into partial underwriting agreements with companies controlled by directors Edward Ellyard and Thomas Fontaine and will be seeking further underwriting arrangements with non-related parties.

Up to 198,290,369 new shares will be issued under the offer.

Ormil had on 24 August 2012 completed its takeover of Energy Botswana Limited, giving it a portfolio of coal seam gas assets in Botswana.

Source - Proactive Investors

(www.coalguru.com)