Tangiers raising cash for drilling ops in Morocco
- Project & Tenders
Tangiers Petroleum Limited has resolved to place A$5 million worth of shares, before costs, through the private placement of 31.25 million shares to specified wholesale, institutional and sophisticated investors at A$0.16 per share (“Placement”) in Australia, the United Kingdom and Hong Kong.
The Placement will be completed in two tranches consisting of:
• approximately 23.6 million shares issued in the first tranche pursuant to the Company’s remaining 15% capacity under ASX Listing Rule 7.1; and
• a balance of approximately 7.5 million shares issued in the second tranche subject to shareholder approval at the Annual General Meeting of shareholders scheduled to be held in early June.
The proceeds of the raising will be applied to the 33% share of any costs in excess of the US$33m free carry provided by the Tarfaya Farm-Out Agreement for the drilling of the TAO-1 well, offshore Morocco,due to be spudded next month and for general working capital expenditure. The Company has agreed with Galp Energia Tarfaya B.V. to set up a joint account which will hold the US$7.5 million past costs due to Tangiers under the Farm-Out Agreement. These funds will also be used to contribute to any costs in excess of the US$33m free carry limit.
DJ Carmichael Pty Ltd, Foster Stockbroking Pty Ltd and BBY Limited are acting as Joint Lead Managers of the Placement.
Application will be made for the new shares to be admitted to trading on both the ASX and the AIM market.
Tangiers Managing Director David Wall said the placement would ensure the Company was well-funded as it sought to take full advantage of its strong growth opportunities.
“The TAO-1 well is a potential company-making opportunity,” Wall said. “This is reflected in the encouraging support for the placement among new institutional and sophisticated investors.”