Investors jump on to White Energy

CLEAN coal player White Energy has raised $A55 million ($US42.63 million) through the issue of 36.67 million new ordinary shares at $1.50 per share, with the placement over-subscribed.

Blair Price

White said there was strong demand from local and overseas institutions.

The shares were issued in two tranches through Australian stockbroker Southern Cross Equities.

White said the proceeds would underpin the company’s business development activities, especially in the North American market.

Last week White inked an agreement with Peabody Energy to develop a coal upgrading plant at one of the producer’s operations in the Powder River Basin, Wyoming.

As part of the deal, Peabody will get the first right to participate in any future coal upgrading projects White Energy starts in North America and China.

In January, White made an agreement with Buckskin Mining for a coal upgrade facility at its namesake mine in the Powder River Basin.

White holds the patent to the binderless coal briquetting process that upgrades lower-rank coal to increase its energy efficiency.

Shares in White are closed up 5c yesterday to $1.76.