Under the oversubscribed share purchase plan, NuCoal will issue 21.1 million shares at 30c per share.

The SPP follows on from a recent institutional share placement by the company, enabling it to raise $29 million.

The SPP and placement were undertaken at a fixed price of 30c per share.

NuCoal said it decided to increase the SPP from $5 million to $6.3 million on the back of strong demand for the plan.

The company said it was overwhelmed by the support for both the placement and SPP.

“Funds raised from the capital raising put the company in a strong position to continue to progress its exploration and development plans across its portfolio of tenements,” NuCoal said.

The funds, to be allocated to working capital, are a boost for the company, which is aiming to release a prefeasibility study for the Doyles Creek project by June 2012.

The Doyles Creek project in the Hunter Valley is tipped to produce 5 million tonnes per annum.

In addition, the Doyles Creek underground mine and training school is expected to create around 300 jobs.

The training school is aimed at addressing the critical skills shortages in the Hunter Valley and the wider Australian coal mining industry.