Metgasco of Australia said that is has received binding commitments from existing shareholders and new institutional and sophisticated investors in Australia and overseas for a private placement of new ordinary shares at an issue price of $0.20 per share to raise approximately $10 million.
As a result of this announcement, Metgasco will resume trading from the commencement of trading today. The private placement was conducted in accordance with ASX Listing Rule 7.1 and will be settled in one tranche.
In addition, Metgasco will offer eligible shareholders the right to participate in a Share Purchase Plan which will enable existing shareholders to apply for up to $15,000 of shares at the same price as the Placement. Further details of the SPP, including the timetable will be provided to shareholders shortly.
Proceeds from the capital raising will be applied to Metgasco’s planned work program, which includes lateral CSG wells and license well commitments.
[mappress] LNG World News Staff, September 17, 2012; Image: Metgasco