London, United Kingdom, 2 Dec – British group Beacon Hill Resources made 23 million pounds sterling in order to pay the amount it still owes for acquisition of coal mine Minas Moatize, in Mozambique, by its subsidiary BHR Mining and to speed up mining at the project.
The cash was generated through the sale of 184 million new ordinary shares at a unit price of 12.5 pence.
BHR Mining, which is to be 100 percent owned by Beacon Hill Resources, acquired Minas Moatize last May, and the group plans to speed up exploration at the mine in order to produce 2 million tons of coal per year starting in the first quarter of 2012.
Minas Moatize currently produces 8 million tons of coal per year, at a small open faced mine.
The chairman of Beacon Hill Resources, Justin Lewis, said that Minas Moatize would generate significant value for the group, providing potential revenues of US$200 million per year. (macauhub)