The directors, who hold 19% of the company, noted that the share price closed at 24.5c on Thursday, a 26% premium to Crosby’s bid.

New South Wales coking coal producer Gujarat NRE Minerals extended its offer for Rey in late October, even though the cash option of the bid was 9c per share.

Rey has rejected this offer more than once, with Gujarat’s bid to close on November 27, while Crosby’s bid ends December 4.

Rey is aiming to raise $15 million at 20c per share, with $10 million through an institutional placement and the other $5 million through a share purchase plan which has been mailed out to shareholders.

Approval for the share purchase plan will be sought at the AGM on November 27.

Funds will be used to finance a feasibility study into Rey’s Canning Basin coal project in Western Australia, expected to start early 2010.

The prefeasibility study is due to be completed by year-end, with Rey expecting the project to start up in 2012.

Rey recently secured port access at Derby, with coal to be trucked 180km from the project site in a 2 million tonne per annum export operation.

In June, Rey upgraded the resources at the Duchess-Paradise project to 511Mt, including 35.2Mt measured, 143.5Mt indicated and 331.5Mt inferred.

Rey shares have shed 1c to 23.5c this morning.