Riversdale raises USD205 million for Mozambique Mine

Riversdale to Raise $205 Million for Mozambique Mine2007-11-23
Riversdale Mining Ltd., the Australia-based coal-mining company backed by India's Tata Steel Ltd., said it will sell shares worth as much as A$235 million ($205 million) to fund the development of a project in Mozambique.Riversdale will issue as many as 25.3 million shares at A$9.30 each, mostly to institutional clients of Hartleys Ltd. and RBC Capital Markets, the Sydney-based company said today in a statement to the Australian Stock Exchange.Tata Steel in August agreed to spend A$100 million to buy a 35 percent stake in the Australian company's Benga and Tete exploration tenements in Mozambique as it seeks increased supplies of coal for steelmaking. The Benga license in the Moatize district of the southern African nation may have 1.225 billion metric tons of coal resources, Riversdale said this month.``Riversdale is now very well positioned to progress the development of the Mozambique project, and will be applying the necessary resources to ensure that the project will be delivering hard coking coal and thermal coal products to market by 2010,'' the company said in today's statement. - (Bloomberg.com)