PERTH (miningweekly.com) – Oil and gas explorer Range Resources has entered into a subscription agreement with Hong Kong-based institutional investor Abraham to raise $12-million.
The ASX- and Aim-listed company told shareholders on Thursday that under the terms of the subscription agreement, Abraham would subscribe for around 712-million shares, at an issue price of £0.01 a share, representing a premium of around 49% to the mid-market share price of Ranger shares on May 14.
The subscription would be conducted in two tranches, with the number of shares in each tranche dependent on the exchange rate between the British pound and the US dollar at the time of completion.
Once the subscription agreement is completed, Abraham would hold a 15% stake in Ranger.
“The $12-million subscription will allow us to refinance the expensive and dilutionary corporate debt and provide working capital as we now move forward with Range’s operational and long-term financing objectives, particularly in Trinidad,” said Ranger CEO Roy Scott Russell.
As of April this year, the company had a total debt of some $10.5-million.
Range holds three offshore production licences in Trinidad, and has further interest in Guatemala, Somalia, Colombia, the Republic of Georgia, and in the US.