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
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.