Hot Rock to raise USD 3.2m for exploration in Chile, Peru

(ADPnews) - Nov 5, 2010 - Australian geothermal energy company Hot Rock Ltd (ASX:HRL) today said it is planning a share placement and a rights offering to raise up to AUD 3.2 million (USD 3.2m/EUR 2.3m) for exploration at its projects in Chile and Peru.

The firm will also use the proceeds to finance exploration and testing at its Australian Koroit Project and for working capital needs.

The placement is to institutional and sophisticated investors who have agreed to subscribe for some 13.8 million shares at AUD 0.06 each. The non-renounceable rights issue is to eligible shareholders, offered to buy two new shares at AUD 0.055 apiece for each five shares they already own.

Placement shares will be allotted on November 10, 2010 and the rights issue will be available on November 16, 2010, Hot Rock said.

Australian investment bank Bizzell Capital Partners manages the placement and is also the sole underwriter of the rights issue. Hot Rock has provided the bank with the right, but not the obligation, to place up to further 18.2 million shares at AUD 0.055 each after closing of the rights issue. This additional transaction is subject to shareholder approvals. If completed, it would raise an additional AUD 1 million, according to Hot Rock.

(AUD 1.0 = USD 1.014/EUR 0.714)

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