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Market:	ASX
Sector:	Coal
EPIC:	MTE
Latest Price:	0.29 (-3.33% )
52-week High:	0.97
52-week Low:	0.27
Market Cap:	29.62M

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MetroCoal

MetroCoal (ASX: MTE) is an emerging Australian coal-based energy company focused on projects in the Surat Basin in South East Queensland.

MetroCoal’s $24 million share placement gets Chinese government green light

Monday, November 14, 2011 by Christine Feary

MetroCoal (ASX: MTE) is able to proceed with a share placement to DADI Engineering Development Group to raise $24 million, after DADI received all required Chinese Government approvals.

Announced on September 6, 2011, the placement will see Chinese coal group DADI take up 32 million shares at $0.75 per share for a total $24 million investment.

At completion of the placement, DADI will hold 15% of MetroCoal shares, and a representative of DADI, Dongping Wang, will join the board of MetroCoal.

MetroCoal is now able to proceed with the placement of 28.8 million shares to DADI, subject to shareholder approval, which will be sought at the Annual General Meeting (AGM) on November 24.

An initial 3.2 million shares were issued to DADI on September 16, for $2.4 million.

Funds raised through the placement will be used to further develop MetroCoal’s projects, in particular the 150.9 million tonne Bundi coal project in Queensland’s Surat Basin, along with its investment in Tenement to Terminal and other infrastructure solutions.

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