Drillsearch Raising Funds for Marina Prospect
Drillsearch will issue up to a maximum of 50,000,000 new shares, which if all taken up will raise $8 million (before costs). The funds raised will be used primarily to fund the company's share of costs associated with drilling the offshore Marina Prospect in the Bonaparte Gulf, WA, which is scheduled to begin in October, 2007, to partially re-pay loan facilities and for other working capital purposes.
Under the SPP shareholders registered as of August 1, 2007 (the Record Date) will be eligible to apply for either $1,000, $3,000 or $5,000 worth of Drillsearch ordinary shares at an issue price of $0.16 per share.
The SPP issue price represents a 20% discount to the volume weighted average price ("VWAP") of Drillsearch shares on the ASX for the month preceding the date of this announcement, an 18% discount to the closing price of Drillsearch shares on the ASX on the business day before this announcement and a 16% discount to the VWAP of Drillsearch shares over the five (5) day period up to and including the ASX business day before this announcement.
In the event of under subscriptions by shareholders (i.e. less than $8 million received), Drillsearch will not place any shortfall pursuant to offers exempt from disclosure under Section 708 of the Corporations Act 2001 (e.g. to professional and sophisticated investors). Accordingly, Drillsearch advises this is a one off opportunity for all shareholders. Drillsearch will pay a 2% stamping fee to brokers and licensed advisors who submit applications on behalf of their clients.
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