The placement is not intended to raise capital for CH4's involvement in a proposed power plant in the Bowen Basin, Queensland, the company told EnergyReview.net. But CH4 refused to elaborate on what the funds woould be used for.
"We can't say too much at this stage, but it's not for North Goonyella [power station]," a spokesman told ERN.
The Brisbane-based company asked the ASX to grant the trading halt this morning until an announcement regarding the company’s placement arrangements or the commencement of ASX trading next Monday.
Last week CH4 Gas, Ergon Energy and Peabody Energy Australia Coal announced they were investigating the feasibility of developing a A$30 million, dual-fuelled 30MW power plant at Peabody’s North Goonyella mine, south-west of Mackay.
CH4 said the plant would initially be diesel-fired but could potentially use coal bed methane from mine drainage and gas extracted from seams on the mining lease. Ergon would own and operate the plant, selling electricity to Peabody and putting surplus electricity back into the grid system. CH4 would provide expertise in gas production and gathering.
