Metgasco Limited announced that it has received binding commitments from existing shareholders and new institutional and sophisticated investors in Australia and overseas for a private placement of new ordinary shares at an issue price of $0.26 per share to raise approximately $6.25 Million (Placement).
As a result of this announcement, Metgasco will resume trading from the commencement of trading today.
The private placement was conducted in accordance with ASX Listing Rule 7.1 and will be settled in one tranche.
In addition, Metgasco will offer eligible shareholders the right to participate in a Share Purchase Plan (SPP) which will enable shareholders to apply for up to $15,000 of shares at the same price as the Placement. Further details on the SPP, including the timetable, will be provided to shareholders shortly.
Proceeds from the capital raising will be used to fund:
– The supply of gas to local customers and Stage 1 of the Richmond Valley Power Station (6 MW). The completion of these local projects will generate first revenue for the Company;
– Reserve development and licence commitment drilling in PEL 13 and PEL 426;
– The drilling of the potentially high impact Rosella E01 well on the Mackellar North structure. This structure is located to the north of Metgasco’s Kingfisher discovery and has a P50 OGIP estimate of 1,312 Bcf; and
– Ongoing working capital requirements.
[mappress]
Source: Metgasco, June 17, 2011;