AMER.L Regulatory News (AMER)

18 May 2006 07:01

Chaco Resources PLC18 May 2006 18th May 2006 CHACO RESOURCES PLC ("Chaco" or "the Company") Placing to raise £4 million Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focusedin South America, announces that it has raised £4m before expenses, through thePlacing ("the Placing") of 26,666,667 new ordinary shares ("Ordinary Shares") at15 pence per share. The Placing has been effected to fund the Company's latestcommitments in relation to its South American exploration and developmentprogramme and to provide the Company with further working capital. The Placing is conditional on the new shares being admitted to AIM, admission isexpected to occur on 19 May 2006. The new Ordinary Shares will rank pari passuin all respects with the existing Ordinary Shares which are currently traded onAIM. Following admission there will be up to 534,134,554 Ordinary Shares inissue. Further details on the Company and its projects are available on the Company'swebsite: www.chacoplc.com For further information contact: Martin Groak, Finance DirectorChaco Resources plcTel: 07949 209 301 Marc YoungDaniel Stewart & Company plcTel No: 0207 776 6550 Simon Robinson / Ana RibeiroParkgreen CommunicationsTel: 020 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange