Churchill Mining raises £7.7m

3rd May 2011 14:23

Mining group Churchill has agreed a £7.7m share placing to develop its East Kutai Coal Project in Indonesia.The shares are being placed to the businessman and businesswoman Rachmat Gobel and Fara Luwia. A total of 19,345,000 shares are being issued at 40p a share, which is a 40p ahead of the average price in the 20 days to 20 April.After the placement the two are expected to hold about 16.5% of the company's share capital. "Churchill welcomes Mr Gobel and Ms Luwia as both shareholders and strategic partners," said Churchill chairman David Quinlivan. "They have a significant on-ground presence in Indonesia and Churchill believes that they will provide the local expertise and experience necessary to advance the East Kutai Coal Project through to its production phase in the most expeditious manner possible."Gobel said: "I am looking forward to working with Churchill to advance the East Kutai Coal Project into development. I believe that this project will be a significant contributor to East Kalimantan's economy and bring substantial benefits to the region and Indonesia as a whole."