Whitebark raises cash for Wizard Lake

30th June 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Oil and gas junior Whitebark Energy will raise up to A$3-million in a partially underwritten entitlement offer to fund maintenance and workovers cost at the Wizard Lake project, in Canada, as well as the acquisition of land mineral leases and for working capital.

The ASX-listed company will undertake a one-for-three non-renounceable entitlement offer, priced at 3c each, to raise the capital.

Whitebark said on Tuesday that the offer had been structured and priced to encourage the participation of existing shareholders, with the subscription price representing a discount of some 35% to the company’s 15-day volume weighted average share price.

“The board carefully considered the current energy market circumstances and has decided to proceed now to strengthen the company’s operational and financial capacity to emerge from the energy sector and Covid-19 crisis in a better position,” said chairperson Charles Morgan.

“The offer has been attractively priced to encourage broad shareholder participation, and has been structured to give existing shareholders priority in order to maintain or increase their exposure.”