WHL Gets $4M Loan from Magna to Support Seychelles, La Bella Projects

Australian energy company WHL Energy Limited (WHL Energy or the Company) announced Wednesday it has received new funding support providing for a commitment of $4 million from New York-headquartered investment firm Magna Equities II, LLC (Magna).

WHL Energy will have immediate access to $125,000 of those funds which will enable the Company to maintain its momentum in increasing the prospectivity of its Seychelles and VIC/P67 La Bella projects.

WHL Energy Managing Director, David Rowbottam, said: “This is a sensible step for the Company and its shareholders and will allow us to continue the ongoing work with the Company’s existing assets and to advance work on new opportunities currently being reviewed.”

“To have the backing of a respected U.S. fund such as Magna at a time when the junior-end of the resources market is struggling to raise fresh equity is a tremendous vote of approval for both WHL Energy and its existing assets.”

Under the Magna Facility, WHL Energy will receive an initial $125,000 in funding on the date of closing and an additional $125,000 within 30 days of closing.

Subsequent funding in tranches of up to $250,000 is available every 60 calendar days (to a maximum of $3.75 million) at the Company’s election, subject to customary conditions including no events of default or termination events having occurred.

The Magna Facility has a 24 month term from the date of each drawdown, is unsecured, bears no interest costs, can be repaid at any time by the Company with a 15 percent premium and can be converted into WHL Energy shares at any time by Magna during the term at a 20 percent discount to the 5-day volume weighted average price (VWAP) of WHL Energy’s ordinary shares.


View Full Article


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Manager Strategic Supply Chain Sourcing Job
Expertise: Project Controls|Purchasing|Supply Chain Management
Location: Denver, CO
Strategy & Performance Director Job
Expertise: Budget / Cost Control|Business Analyst|Business Development
Location: Denver, CO
Associate Sourcing Specialist or Sourcing Project Specialist Job
Expertise: Project Controls|Project Management|Supply Chain Management
Location: Denver, CO
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours