20 December 2010KANGAROO RAISES $23.8M THROUGH 19.9%PLACEMENT TO...

20 December 2010
KANGAROO RAISES $23.8M THROUGH 19.9%
PLACEMENT TO STRATEGIC INVESTORS
Key Points:
? Sophisticated investors to acquire 19.9% stake in KRL through a $23.8M share
placement at $0.119 per share
? Cash injection to be used to progress KRL?s portfolio of emerging Indonesian
production projects and provide additional working capital
International coal producer Kangaroo Resources Limited (?KRL? or the ?Company?) is
pleased to announce that it has secured a significant new cornerstone investor group
through a $23.8 million share placement.
The proceeds of the placement, which will see this investor group acquire a 19.9% stake
in KRL, will be used to;
1. Payout the unconverted note-holders, leaving the company in a debt free
position,
2. Progress the continued ramp-up of production from KRL?s portfolio of emerging
coal projects in Indonesia, and
3. Provide additional working capital.
KRL has agreed to issue 200 million shares at an average price of A$0.119 to the
investors. The price was set at 80% of the 5-day VWAP prior to the date of KRL going into
a trading halt on 10th December.
The share placement is being undertaken using a combination of:
(a) 100 million shares under Shareholder Resolution 6 passed at the Company?s recent
Annual General Meeting; and
(b) 100 million shares from the existing capacity available to KRL under ASX Rule 7.1
(remaining 15% capacity)
KRL is targeting ramp-up of production at its Mamahak semi-soft coking coal project in
the near term as well as undertaking an aggressive exploration program targeting
additional coal resources to extend the current life-of-mine planning.
2
Commenting on the announcement, KRL Managing Director, Mark O?Keeffe, said: ?We
are delighted to have secured a group of cornerstone investors that strengthen the
Company?s financial position and allows us to move forward with the development of
our Indonesian projects.?
ENDS
Further information:
Mark O?Keeffe
Managing Director