Intra Energy seeks to raise $4.5M

FOLLOWING a trading halt on the Australian Securities Exchange, Intra Energy has announced a share rights issue to raise approximately $A4.5 million ($US4.7 million).

Staff Reporter

The funds will be used to provide funding for the company’s operations in Tanzania and Malawi.

The company's flagship project is the Tancoal mine in the Ngaka coalfield of Tanzania operated by Tancoal Energy, a joint venture with the National Development Corporation of Tanzania as 30% shareholder.

Tancoal has commenced coal sales to local industry as well as exports to Malawi, Kenya and Uganda.

In a release on Tuesday Intra Energy said it would use part of the funds raised to expand operations at Tancoal, including purchasing additional equipment and improving mine logistics through road upgrades and expanded sales stockpiles.

The company said it would also use the funding for additional equipment purchases and civil infrastructure for the Malcoal mine in Malawi, further studies required for a bankable feasibility study for power stations at Tancoal and in Malawi, as well as for external JORC studies at recently acquired tenements in Malawi, Ngana and North Rukuru.

“The rights issue provides the opportunity for all shareholders to take part in funding the expansion of [the company’s] eastern African mining operations,” Intra Energy chairman Graeme Robertson said.

“IEC is already the major producer of coal in eastern Africa.

“In recent months we have delivered a number of key milestones including the signing of a memorandum of understanding with the government of Malawi regarding IEC’s intent to develop a 120 megawatt (net) coal-fired power station in Malawi, the extension of IEC’s MoU with Tanesco for a power station in Tanzania including expansion of the plant size from 120MW (net) to 200MW (net), commencement of mining at IEC’s Malcoal mine in Malawi and the company being granted highly prospective coal exploration licences in Malawi.

“The capital raising will also fund external JORC studies in relation to the recently granted exploration licences in Malawi as IEC expands its eastern African coal portfolio.”

Shareholders will be offered two new shares for every 15 shares held on April 24 at the issue price of 14c.