Australia's FAR Raises $45.3M to Fund Offshore Senegal Oil Project
Australia's FAR Ltd. reported Friday the successful completion of a placement to institutional and sophisticated investors to raise $45.3 million (AUD 60 million) before expenses by issuing 705,882,353 shares (Placement). The Placement was significantly oversubscribed with strong support by existing shareholders and saw the introduction of new institutional investors to FAR’s register.
The proceeds from the placement (after costs) will be used to fund FAR’s continued participation in the drilling and evaluation program offshore Senegal.
The Placement was arranged by Bell Potter Securities Limited and RBC Capital Markets as Joint Lead Managers.
The Placement price of $0.0655 (AUD 0.085) represents a 6.6 percent discount to the company’s last close price at April 12 of $0.071 (AUD 0.091) and an 11.2 percent discount to the 5 day volume weighted average price to April 12.
Upon completion of the Placement, the Placement shares will represent approximately 16 percent of the enlarged share capital of the company, which will have 4,413,532,452 ordinary shares on issue. The Placement shares, when issued, will rank equally in all respects with the existing ordinary shares.
The shares will be issued in two tranches:
- The first tranche to raise approximately $36.2 million (AUD 47 million) is unconditional and settlement is expected to occur on Wednesday April 20 with normal trading to occur on Thursday April 21
- The second tranche for the balance of approximately $10 million (AUD 13 million) is subject to ASX Listing Rule 7.1 shareholder approval which is intended to be considered by shareholders at an Extraordinary General Meeting to be held on May 26. Settlement of the second tranche is expected to occur on Tuesday May 31 with normal trading to occur on Wednesday June 1
Cath Norman, FAR managing director said, “It is a testament to the quality of the Senegal project that FAR has successfully completed this capital rising in a tough market for oil explorers and developers. We are delighted to bring on board new, large institutional shareholders to help us progress the Senegal project for the benefit of all shareholders.”
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