PERTH (miningweekly.com) – Oil and natural gas explorer Byron Energy has raised A$16-million through a share placement, with the company hoping to raise a further A$4-million through a share purchase plan (SPP).
Byron will place around 123.1-million shares, at a price of 13c each, in two tranches.
The first tranche will consist of more than 106.3-million shares, and will raise A$13.8-million under the company’s existing placement capacity. The remaining 16.7-million shares will be placed subject to shareholder approval.
In addition, the junior would also undertake an SPP allowing existing shareholders to subscribe for an additional A$30 000 worth of shares in the company, also priced at 13c each.
The SPP will open on May 26 and close on June 12.
In addition to the share placement and SPP, Byron Energy also announced that it had secured $3.5-million in loans from Crimson Midstream in the form of promissory notes on the same terms and conditions as an existing $15-million facility, with the option of up to $1-million of that to be provided in the form of equipment or vendor services applied to Byron Energy’s SM58 G Platform and pipeline installation, in the Gulf of Mexico.
The funds raised through the placement, SPP and additional loan will be used to complete the SM58 platform and pipeline installation, along with the completion of the SM58 G1 discovery well.