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Coal seam gas producer Eastern Star Gas Ltd (ASX:ESG) says it will raise $100 million, in fresh capital to fund growth initiatives.
The equity raising will be completed by way of a fully underwritten placement of approximately 122 million shares at 82 cents.
As of the 30 June, Eastern Star Gas says it had a cash position of $31.5 million and the placement is expected to increase this amount to $128 million.
Managing Director David Casey says the placement will provide Eastern Star Gas with funding to support ongoing developments and provide additional capital.
Eastern Star Gas reported a loss of $2.5 million for the year to 30 June 2009.