Source: http://www.miningweekly.com                       Date: 21 October, 2010

Exploration company Hunnu Coal is looking to raise up to AUD40 million to accelerate its Mongolian coking and thermal coal projects, through placing 50 million shares, at an issue price of 80c a share, to institutional and sophisticated investors. The placement would be issued in two tranches, with the first 24 million shares planned on October 27. The issue of the second tranche would be conditional upon shareholder approval.

Funds raised in the placement would also be used to calculate a Joint Ore Reserves Committee resource at both the Tsant Uul coking coal and the Unst Khudag thermal coal projects. Both these projects would also be fast-tracked for development. The company has set a timetable of developing three coal mines in Mongolia within the next four years.