PERTH (miningweekly.com) – ASX-listed Strike Energy has completed a A$12-million share placement to fund drilling in Western Australia.
The company on Thursday said that it would issue more than 184.6-million shares at a price of 6.5c each, to professional and sophisticated investors, with the shares placed under Strike’s existing placement capacity.
The capital raise followed the grant of an offtake option at West Erregulla with fertilizer and chemical company CSBP for the purchase of up to 100 PJ of gas. CSBP is expected to pay an option fee of A$5-million to Strike before the end of May.
“The strong support for this capital raising, together with the securing of a significant Western Australian industrial gas user as a potential customer, is an endorsement of Strike’s asset portfolio and significant news flow anticipated to come from West Erregulla 2 and the Jaws appraisal wells,” said Strike MD Stuart Nicholls.
“Should Strike have positive results at either or both projects, the company is likely to take the transformational step required to become a true mid-cap natural gas company in Australia.
“The next 60 to 90 days will be pivotal in the company’s history and we look forward to rewarding all shareholders, old and new, for their long-term support.”