PERTH (miningweekly.com) – Africa-focused oil and gas explorer FAR will raise A$45-million through a share placement to sophisticated and institutional investors, to fund its ongoing interest in the SNE field development, offshore Senegal.
The company would be placing more than 818.8-million shares, at a price of 5.5c each, representing a 1.8% discount to FAR’s last closing price on April 30, and a 4.9% discount to its 30-day volume weighted average share price.
The share placement will be undertaken in two tranches, with the first to raise A$38.9-million, and the second A$6.1-million. Shareholder approval for the placement would not be required, as it will be conducted under FAR’s existing placement capacity.
The company on Thursday said that proceeds from the placement will be used to fund its ongoing interest in the SNE field, including preparatory work for the proposed 2020 drilling programme, and for Australian seismic and processing costs, and general working capital.