Gujarat NRE Resources NL raises $10.5 Million

Gujarat NRE Resources NL (Gujarat) Chairman, Mr. Arun Kumar Jagatramka on July 30, 2007 announced that Gujarat had raised $10.5 million via an institutional placement of 30 million shares, at an issue price of 35 cents per share, to three international institutions.

Mr. Arun Kumar Jagatramka said: "We are delighted that the Company has attracted the support of such reputed international institutions. The funds raised will be directed towards the acquisition of BHP Billiton's Elouera Colliery and will provide additional working capital. The Elouera acquisition is progressing well and is expected to be completed during the next quarter.

In a related development India's largest commercial bank the State Bank of India has sanctioned debt facilities in excess of $ 100 million to part finance the aforesaid acquisition and to meet the development costs & working capital requirements.

Ernst & Young Transaction Advisor Services Ltd. acted as Financial Adviser.

Steinepreis Paganin acted as Legal Advisers.

BBY Ltd managed the Placement.

Source : Equity Bulls

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