Mining Projects Group mulls investing in gold, coal projects

ASX-listed Mining Projects Group Limited said it has reviewed several gold and coal projects in Indonesia over the last few months for possible investment.

?If appropriate the company intends to proceed to undertake due diligence on these opportunities and establish their prospectivity for possible investment,? it said.

These activities inherently require expenditure such as engagement of qualified experts to verify legal ownership, logistics and geology before committing to any one project.

To ensure the company has sufficient working capital for the costs of such investigations, the company is undertaking a fundraising program to raise up to $1 million

The fundraising will be implemented through a non renounceable rights issue. The rights issue will be a two for three non renounceable rights issue to shareholders at 2 cents per ordinary share with an attaching option on a one for one basis exercisable at 2 cents with an expiry date February 2013.

On exercise the options will entitle the holder to one further ordinary share and attaching option expiring February 2014 and exercisable at 3 cents for one further ordinary share.

The maximum number of new shares offered under the rights issue is 49.64 million units of shares together with 49.64 million shares free attaching options each with an entitlement to a further option upon exercise.

Peregrine Corporate Limited has agreed to fully underwrite the rights issue for a fee of 6 percent of the value of the shortfall. (romel)