LONDON (Alliance News) - Churchill Mining PLC on Friday said it has raised funds to support its claim against the Indonesian government and to defend the claim made against the company by the London Stock Exchange.
Churchill has conditionally raised GBP800,000 through the placing of 7.3 million shares at 11 pence each and issued warrants on the basis of one warrant for every two placing shares exercisable at a price of 20p per share expiring on March 31, 2019. Churchill shares were down 11% to 13.00p early Friday.
The proceeds will be used to provide additional funding for Churchill's international arbitration claim against the Republic of Indonesia, to meet the costs associated with its defence of the London Stock Exchange's statement of claim and for general working capital.
Last year, Churchill launched legal proceedings against the Indonesian government at the International Centre for Settlement of Investment Disputes, based in Washington, claiming the government unlawfully revoked mining licences awarded to Churchill for its East Kutai coal project, in which it held a 75% stake through its relationship with the Ridlatama Group.
In a separate issue, the company said in its annual results in November that in July the London Stock Exchange alleged it had breached AIM rules 11 and 31 from August 2010 to March 2011. Churchill said it disputes the contentions raised by the Exchange.
AIM rule 11 states that an AIM company must issue notification without delay of any new developments which are not public knowledge concerning a change in its financial condition, its sphere of activity, the performance of the the business, or its expectation of its performance, which if made public would likely lead to a substantial movement in the price of its AIM securities.
AIM rule 31 states that an AIM company must have in place sufficient procedures, resources and controls to enable it to comply with the rules, seek advice from its nominated adviser regarding compliance with the rules when appropriate, provide its nominated adviser with any information it reasonably requests in order for the nomad to carry out its responsibilities, and ensure that each director accepts full responsibility for compliance with the rules as well as disclosing to the company any director dealings or changes in shareholdings.
Churchill added that while the company's directors have not been able to participate in the placing due to it being in a close period for its interim results, they have expressed interest in participating for up to GBP325,000 on the same terms as the placing following the announcement of the interim results.
Churchill will release its results for the first half ended December 31 on March 18.
"We wish to thank our new shareholders for their support as we progress our claim for damages against the Republic of Indonesia," Chairman David Quinlivan said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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