The company's stock had strengthened in the run up to the placement peaking at 65c last week, up from a low of 40c in early March, before moving back to 62c at the time of printing.
A total of 42,727,270 new ordinary shares were conditionally placed with UK institutions, at a price of 22p ($0.55) per share to raise gross proceeds of £9.4 million (about $23.5 million).
Following the placing, the new shares will represent approximately 9.14% of the company's enlarged issued share capital.
Hardman's working capital budget to the end of December 2004 has a total exploration expenditure on the company's projects of approximately $48 million (£19.7m). The major portion of this expenditure (over 80%) is to be spent on the Mauritania licenses, allowing for the drilling of four wells in 2003 and two wells in 2004.
Hardman's cash position at 30 June 2003 was around $31 million (£12.7m) and is enough to fund the company's current 2003 expenditure plan, including the Mauritania exploration drilling program. However, the directors proceeded with the capital raising to provide for cost overruns and contingencies in the program.
As a separate exercise the company has been working with commercial banks and with the International Finance Corporation to put in place project financing facilities of up to $US100 million (£62.5m) to fund Hardman's 21.6% share of the cost to develop the Chinguetti Oil Field, offshore Mauritania. It is expected to commence oil production during 2005 or early 2006.
