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LONDON (Alliance News) - Churchill Mining PLC said Monday it has conditionally raised GBP300,000 to support its claim against the Indonesian government and to defend the claim made against the company by the London Stock Exchange.
Churchill said it has conditionally raised the sum through placing 2.7 million shares at 11 pence each and issued warrants on the basis of one warrant for every two placing shares exercisable at a price of 20p per share expiring on March 31, 2019. Shares in Churchill were down 2.3% at 13.92 pence on Monday.
The placing comes a month after Churchill raised GBP800,000 in a similar issue of equity and warrants, in which directors were unable to participate as the company was in a close period for the interim results.
At the time, Churchill said the directors had "expressed an interest in participating on the same terms as that placing following the announcement of the interim results", and, on Monday, it said the directors had subscribed for 1.4 million of the shares available in the placing.
The proceeds will be used to provide additional funding for Churchill's international arbitration claim against the Republic of Indonesia, to meet the costs associated with its defence of the London Stock Exchange's statement of claim and for general working capital.
Last year, Churchill launched legal proceedings against the Indonesian government at the International Centre for Settlement of Investment Disputes, based in Washington, claiming the government unlawfully revoked mining licences awarded to Churchill for its East Kutai coal project, in which it held a 75% stake through its relationship with the Ridlatama Group.
In a separate issue, the company said in its annual results in November that in July the London Stock Exchange alleged it had breached AIM rules 11 and 31 from August 2010 to March 2011. Churchill said it disputes the contentions raised by the Exchange.
AIM rule 11 requires companies to notify the market without delay about new developments in the company, whilst rule 31 covers compliance of a company and its directors.
"The company has now raised a total of GBP1.1 million before costs in these two placings and I thank all who participated for their support as we progress our claim for damages against the Republic of Indonesia," Chairman David Quinlivan said.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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