Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed oil and gas explorer FAR has completed a A$60-million raising.
The company placed about 705.8-million shares to institutional and sophisticated investors, priced at 8.5c a share. The pricing represented a 6.6% discount to FAR’s last closing price on April 12 and an 11.2% discount to the five-day volume weighted average share price.
FAR told shareholders on Friday that the shares would be placed in two tranches, with the first placement raising A$47-million, and the second a further A$13-million, subject to shareholder approval.
Upon the completion of the placement, the new shares would represent about 16% of the enlarged share capital of the company.
Proceeds from the raising would be used to fund FAR’s continued participation in the drilling and evaluation programme of its offshore Senegal projects. The company made two offshore oil discoveries in Senegal at the end of 2014.
“It is a testament to the quality of the Senegal projects that FAR has successfully completed this capital raising in a tough market for oil explorers and developers,” said FAR MD Cath Norman.
“We are delighted to bring on board new large institutional shareholders to help us progress the Senegal project for the benefit of all shareholders.”