Current Tip-ex Haulier of the Year Hargreaves Services has raised £42.3m via a share placing as it looks to expand its portfolio of UK surface mining assets, to the benefit of its transport division.

The shares have been placed in two tranches with a mixture of existing and new institutional investors. The second tranche is subject to shareholder approval at a meeting scheduled for the 7 May.

Hargreaves expects to achieve net proceeds from the placing of £40.2m, which equate to 16.6% of the group’s enlarged share capital of more than 30, 000 shares.

Tim Ross, non-executive chairman at Hargreaves, 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.”

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