A trading halt has been placed on L&M Energy Ltd shares pending a material announcement regarding a capital raising.The company is New Zealand's biggest coal seam gas explorer. It is 84 percent owned by high-profile Australian miner Geoff Loudon and W
A trading halt has been placed on L&M Energy Ltd shares pending a material announcement regarding a capital raising.
The company is New Zealand's biggest coal seam gas explorer. It is 84 percent owned by high-profile Australian miner Geoff Loudon and Werner Muller and Kwok Wai Chiu.
It has previously estimated it would spend almost all of its remaining cash reserves this year, doubling the cost of its capital programme from $3.1m to almost $6m, and would have to raise fresh capital.
The company has applied for prospecting rights over 2000 square kilometres of the Waikato -- thought to contain over 2 billion tonnes of coal -- with plans to burn coal underground to produce gas that can by piped to Auckland.
According to a presentation Mr Loudon owns 28 percent, Campania Holdings Inc 28 percent and Tangent International Ltd has 28 percent.
The company's shares last traded at 15 cents.
