PERTH (miningweekly.com) – Australian and Johannesburg-listed Renergen has urged the Australian bourse to resume its share trading while it looks for a leak.
The company’s shares were placed in a trading halt on the ASX this week after a report in the Australian Financial Review stated that Renergen was planning a near A$20-million capital raise to fund drilling and preparation work at its Virginia gas project, in South Africa.
In a statement to the ASX, Renergen said that the company was not aware how the information had reached the market, as the capital raising was incomplete. Furthermore, the company did not believe that confidentiality had been lost for the purposes of its continuous disclosure obligations under the ASX listing rules.
Renergen told shareholders on Wednesday that it would not proceed with the proposed capital raise.
The company at the end of October announced the delayed commissioning of Phase 1 of the Virginia plant, which has resulted in additional costs and lost revenue. The proposed capital raise would have been used to shore-up the company’s balance sheet.