New Horizon Coal Limited (ASX:NHO) announced a private placement of 21,625,000 common shares at AUD 0.08 per share for gross proceeds of AUD 1,730,000 on January 29, 2013. The transaction will take place in two tranches. The first tranche will be for 17,875,000 shares and the second tranche will be for 3,750,000 shares and is subject to shareholder approval for the participation of directors. The shareholder's meeting is proposed to be held in March 2013. Delta Capital Pty Ltd will act as a placement agent. The transaction will see participation from sophisticated and professional investors.

On the same day the company announced that it will issue additional 3,375,000 shares for which the commitment has been received by Carl Coward, director of the company or his nominee. These shares will be issued in the second tranche of the transaction. The company will raise AUD 2,000,000 in this transaction.

On February 11, 2013, the company closed the first tranche of the transaction. The company issued 17,875,000 shares for gross proceeds of AUD 1,430,000.

On March 28, 2013, the company announced that the transaction was approved by the shareholders of the company at the general meeting. The company will issue a total of 7,125,000 shares in the second tranche. The round will include participation from directors of the company, Gary Steinepreis, Carl Coward, and Mark Sanders. Gary Steinepreis or his nominees will subscribe for a maximum of 1,250,000 shares, Carl Coward or his nominees will subscribe for a maximum of 5,250,000 shares, and Mark Sanders or his nominees will subscribe for a maximum of 625,000 shares in the transaction.