23/05/2008
Coal counter Caledon Resources has been able to close its £7.2 million Australian share offer early because of strong demand.
The AIM-quoted company, once a would-be China investment concern and now focused on coking coal projects Down Under, has closed its A$1.10 (35p) offer six days earlier than planned and expects its secondary listing on the Australian Stock Exchange to open on or near 4th June. London-based Caledon, chaired by Robert Alford, will use the money raised to continue the upgrade of its Cook Mine in Queensland’s Bowen Basin,
Some existing shareholders had objected to the dilution represented by the Australian share issue. However, Alford argues ‘Australian institutional investors have a sophisticated understanding and interest in the coal sector and appreciate Caledon’s exciting opportunity with the ramp-up of the newly installed Magatar mining system at Cook Mine’.
Caledon shares, highlighted by Growth Company Investor in 2005 as ‘a brave speculation’ at 3.5p and again a year ago at 40.5p, now trade at 75p, up 1.75p this morning, valuing the company at £134 million. Partial profit taking might be prudent, but they should still outperform several sector peers.
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