The placement of 88 million shares at 25c per share, an 18% discount to Monday’s closing price of 30.5c, raised $22 million, which will be added to the $3 million raised in early November and $5 million to be raised in a fully underwritten share purchase plan.

Chairman Mark O'Keefe said the quality of Kangaroo’s coal assets and its fast-track development strategy had lifted investor demand for participation in the capital raising.

He said the coal assets in Indonesia would rapidly transform the company into a mid-tier Indonesian coal producer.

Kangaroo recently signed a binding heads of agreement to secure the rights to four coal projects in the region to complement the three it already holds.

The company’s portfolio now contains the Kubah Indah, Jawana and Borami coking coal projects and the Tanur Jaya, GPK, BP and MBK thermal coal projects.

Kangaroo is still engaged in legal due diligence over the Tanur Jaya, Kubah Indah, Jawana and Borami projects and will move to sign full definitive purchase agreements as soon as the process is complete.

Following the start of production from GPK (84.82% interest), O'Keefe said the company would target production from Tanur Jaya by the end of the first quarter of 2010, followed by the MBK project in the second half of 2010.

GPK has total JORC resources of 248 million tonnes, including 14Mt indicated and 107Mt inferred.

Of this resource, 141Mt is at depths of less than 60m and Kangaroo therefore expects a low strip ratio.

The announcement reinstates trading in Kangaroo’s shares on the Australian Securities Exchange. Shares were down 24.6% to 23c at close of trade yesterday.