Hargreaves Services raises £42m to develop mining operations

HARGREAVES Services has raised £42m to develop its surface mines business.

The South Yorkshire-based fuel and logistics group has issued 5,460,080 new ordinary shares at a price of 775p with new and existing institutional investors, raising total gross proceeds of £42.3m.

About half of the placing will require approval from a meeting of shareholders on May 7.  Hargreaves decided to close the loss-making Maltby Colliery in South Yorkshire in December last year.

Tim Ross, Hagreaves’ chairman, said: “The UK coal industry is undergoing a major restructuring and we believe that this provides Hargreaves with an exceptional opportunity to acquire surface coal mining assets. 

“The fundraising which we have announced today will enable us to accelerate our strategy of expanding Hargreaves’ portfolio of UK surface mining assets and development pipeline through acquisition. This will consolidate the Company’s position as a leading owner and operator of surface mines and provide significant benefits for the wider operations of Hargreaves.”

N+1 Singer is nominated adviser for the placing and also joint bookrunner with Jefferies.  The Singer team included Leeds-based Richard Lindley and Joe Stroud as well as Sandy Fraser, Nick Owen and David Green.
 
Yorkshire law firm Walker Morris advised on the placing led by John Hamer and Richard Naish.

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