Institutions have taken a placement of 18.2 million shares at 20 cents a share - raising $3.63 million; and Mosaic is also to affect a Rights Issue with a 1:8 share subscription at 20 cents per share - to raise $10.4 million.
Additionally, for every one (1) new share issued one (1) free option will be attached, exercisable at 23 cents on or before September 30, 2005.
The issue price of new shares at 20 cents per share is a discount of 16.7% to the last share sales at 24 cents prior to Mosaic requesting a trading halt.
The non-renounceable Rights Issue is fully underwritten by Patersons Securities Limited.
Specific projects estimated to cost $9.3 million are the construction of a 25 km Waggamba pipeline and gathering station, three additional Waggamba wells and an exploratory well on the RH Prospect lying to the north west of Waggamba.
Mosaic has signed two gas sales contracts this month:- a five year contract for Mosaic to supply in its own right up to 21 PJ to CS Energy's Swanbank power station and a contract for the Churchie gas field partners (Mosaic 49% and Santos 51%) to supply 1 PJ of gas to Santos QNT over the next 6 months.
Mosaic's technical team is confident that there are further large gas fields to be found within Mosaic's Surat-Bowen Basin exploration acreage. The company has enjoyed substantial success in the area and is unlocking gas and oil finds with innovative research and drilling techniques.
"Directors believe this injection of funds to establish long term infrastructure will enable the company to use cash-flows from recent contracts to self-fund additional projects into the future," says CEO-Dr Howard Brady.
Shareholders entitled to the rights issue must be listed on the Company's Share Register by 5 p.m. on the Record Date of 28 June 2004. The Prospectus will then be mailed and the Closing Date for the receipt of subscriptions will be 5.00 pm Eastern Standard Time on Tuesday13th July.
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