Vancouver's SouthGobi Energy Resources Ltd. (TSX-V:SGQ) has closed a $111.5 million private placement with two institutional investors.
Proceeds of the offering will be used to finance the initial development of an open-pit coal mine at SouthGobi's Ovoot Tolgoi coal project in southern Mongolia.
The company sold 10 million common shares at $8 per share and 3.5 million shares at $9 a share. SouthGobi is focused on the development of coal deposits in Mongolia's South Gobi region, to supply coal and electricity to Mongolia and China. It's share price range during the past week: between $10.60 and $9.30; 52-week high: $10.99; 52-week low: $1.76.