Sheng Run becomes cornerstone shareholder in Jatoil

Australian-based Jatoil Ltd. said that it had executed a share subscription agreement with Sheng Run Holdings Group (Australia) Pty. Ltd., which is owned by Chinese electric power and road infrastructure developer Li Xipeng. Sheng Run has been issued 17,144,888 fully paid ordinary shares in Jatoil at US$0.04 per share, to raise US$685,796. This placement represents 13.04% of the issued capital of the company. The price represents a 15% premium to where the shares traded before the transaction was announced. Jatoil has also concluded a heads of agreement with Sheng Run for a further US$1.536 million capital injection once Jatoil’s proposed deal to buy Blackrock Resources Pty. Ltd., a company with significant coal resources in Kalimantan, Indonesia, concludes successfully. (December 13, 2010)