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Clean Global Energy to raise A$453,000 in fully underwritten rights issue

Clean Global Energy (ASX: CGV) will raise about A$453,000 in a fully underwritten rights issue to advance the company’s coal and Underground Coal Gasification (UCG) projects.

Patersons Securities Limited will fully underwrite the offer that will be made through a 1-for-1 non-renounceable pro-rata rights issue of options to acquire CGV shares (new options) at $0.002 per option, exercisable at $0.07 per option.

A total of 226,572,021 options will be issued under the offer. Currently the company has a total of 5,402,079 options to subscribe for shares on issue with exercise prices ranging from $0.40 to $1.00.

Clean Global is currently at the forefront of commercialising UCG technology to produce Syngas for use in heating, power generation and the production of chemicals, fertilizers, ultra clean diesel, and aviation fuels.

The company continues to focus on developing key Queensland coal tenements, most likely for traditional underground coal mining.

Clean Global said UCG on these sites is also a possibility for later development, once the Queensland Government hands down a decision on whether or not to allow commercialisation of UCG activities, which is expected in the March quarter of 2012.

The company also continues to formulate plans for development of the company's USA business which could provide the first commercial UCG to power generation project, using coal in a cleaner process benefitting Oklahoma.

Recently, Clean Global completed a $6 million capital raising via a placement and underwritten rights issue at $0.07 per share to progress its UCG project in Oklahoma.

Earlier in the year Clean Global signed agreements with the $20 billion Indian energy major Essar for its UCG technology and expertise.

Indicating just how big this deal could be for Clean Global Energy, each project has the potential to be worth more than $150 million.