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Mining Projects Group (ASX: MPJ) has closed its A$1.05 million fully underwritten non-renounceable rights issue that will go towards payments to the vendors of Delcarmen Energy.

Proceeds will also be used for ongoing activities at the two exploration permits in Queensland.

Shareholders, who were offered four new shares priced at A$0.01 each for every five shares they held, took up 14.9 million shares to raise around A$149,000. The shortfall of 90.3 million shares will be met by Peregrine Corporate, which agreed to underwrite the rights issue.

Each new share comes with a free attaching option exercisable at $0.015 per share, expiring on November 30, 2014.

Delcarmen Energy assets

EPC 2527 and EPC 2528 are believed to hold both thermal and coking coalpotential within the Triassic-age Esk and Gayndah Formations.

These are the target of projects such as Stanwell Corporation's Kunioon deposit with measured open cut resource of 435 million tonnes of thermal coal; Rio Tinto's (ASX:RIO) Yarraman deposit just south of Tarong power Station with measured open cut of 54 million tonnes of thermal coal; and Cockatoo Coal's (ASX:COK) 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.

Drilling is expected to start once the permits are granted.

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