PERTH (miningweekly.com) – Coal seam gas explorer Galilee Energy has raised A$5.6-million from a share placement to institutional and sophisticated investors.
The company on Tuesday said that more than 14.15-million shares will be placed at a price of 40c each, representing a 9% premium to the company’s 15-day volume weighted average price.
Participants in the share placement will also receive one unlisted option for each share allotted, exercisable at 50c a share, and expiring at the end of December 2019.
The funds raised will be used to assist in progressing the Glenaras gas project, Galilee told shareholders.
“The company is now in a very strong financial position and, subject to continued strong performance of the pilot wells, is well positioned to progress the Glenaras gas project through to its maiden reserve booking,” said Galilee MD Peter Lansom.