"The success of this capital raising signifies investors' confidence in our recently announced plans to enhance the value of the Company's coal assets," managing director Rob Neill said.
The placement of 208,600,000 new fully paid ordinary shares at A$0.005 per share was made to sophisticated and professional investors in Australia.
This was lead managed and arranged by BW Equities. A number of BW Equities' institutional and sophisticated investors also subscribed to the company's shares for the first time.
Cougar chairman Malcolm McAully welcomed the new shareholders that joined its register as it continued its repositioning and transformation.
"This capital injection will support our strategies to rejuvenate Cougar Energy and generate long term value for our shareholders."
Maiden JORC coal resource on the radar
Cougar has recently outlined plans for its maiden JORC drilling program at its Mackenzie PCI coal tenement (EPC 1445) in Queensland's Bowen Basin.
Mackenzie has an exploration target of 120 million to 170 million tonnes and is adjacent to the Jellinbah (NYSE:PCI) and Yarrabee (PCI and Thermal) coal mines.
The maiden JORC report is expected to be issued 90 days after completion of the seven hole drilling program.
Underground coal gasification
The company is also continuing to work with MedcoEnergi in Indonesia and Hulaan Corporation in Mongolia on progressing various underground coal gasification opportunities in those countries.
Cougar plans to develop a 30 megawatt power plant using UCG gas feedstock in Indonesia, whose Government has set coal resource upgrading and developing stranded coal resources as some of its key objectives.
It has also signed off on a Memorandum of Understanding with Hulaan to assess its coal assets for UCG development potential.
The strong response from sophisticated and professional investors to Cougar's capital raising is a sign of the support of the company's plans to to embark on maiden JORC Resource drilling at its Mackenzie PCI coal tenement in Queensland.
Generating a maiden JORC resource for Mackenzie is key step in its strategy to focus on realising value from its conventional coal assets and would be a milestone and catalyst for a potential re-rating of the company.
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